Eaton to Separate and Combine Mobility Unit With Dana Incorporated in $10 Billion Deal

Paul, Weiss is advising intelligent power management company Eaton in a transaction under which Eaton will separate and combine its mobility group, Eaton Mobility, with Dana Incorporated via a Reverse Morris Trust transaction. The deal values Eaton Mobility at approximately $5.1 billion and the combined company at over $10 billion. Under the agreement, Eaton shareholders will own at least 50.1% of the combined company at close, with Dana shareholders owning the remaining 49.9%. Eaton will also receive a cash distribution of approximately $1.1 billion.

The combined company will offer a comprehensive portfolio of drivetrain, propulsion, electrification and power management solutions spanning internal combustion, hybrid and fully electric platforms to commercial vehicle and automotive original equipment manufacturers. Upon the deal’s completion, expected in the first quarter of 2027 pending shareholder approval and other closing conditions, Eaton will operate a more focused portfolio concentrated on its electrical and aerospace businesses.

The Paul, Weiss team is led by corporate partners Dotun Obadina and Steven Williams, and includes partners John Kennedy, Nicholas Schwartz, Alena Thomas, Patricia Vaz de Almeida and Christopher Van Buren and counsel Lyudmila Bondarenko; intellectual property partners Bonnie Chen and Marisa Geiger and counsel Hilary Smith; antitrust partners Christopher Wilson and Scott Sher and counsel Fynn Dewald; executive compensation partners Christopher Gonnella and Matthew Friestedt; real estate partner Peter Fisch; environmental partner Stefanie Gitler; and litigation counsel Audrey Paquet.