Dana Corp. agreed Thursday to merge its powertrain, thermal and sealing businesses with Eaton Corp.’s Mobility unit in a $5.1 billion transaction. The deal will create a combined supplier for commercial and light‑vehicle markets, leveraging Eaton’s transmissions, engine and emissions products alongside Dana’s components. At closing, Eaton shareholders will control just over 50 % of the new entity. The merger follows months of talks to expand.

The merged firm is projected to generate roughly $11 billion in annual revenue. Dana estimates it can unlock $250 million of run‑rate synergies within two years by trimming structural costs, expanding purchasing power, and streamlining manufacturing and engineering. Both companies anticipate stronger positioning in emerging autonomous vehicle platforms as well. Eaton will receive about $1.1 billion in cash at closing, subject to customary adjustments.

Ownership will split 50.1 % to Eaton investors and 49.9 % to Dana shareholders, giving the former controlling interest. By pairing Dana’s component breadth with Eaton’s electrification and emissions expertise, the new company aims to compete more aggressively against Tier‑1 rivals and capture growth in EV‑focused fleets. The transaction reshapes the supply chain for both commercial trucks and passenger vehicles. Analysts note the scale could pressure rivals.