Mumbai, June 12 -- Ireland-headquartered intelligent power management company Eaton has entered into a definitive agreement to separate its Mobility Group business and combine it with Dana Incorporated in a Reverse Morris Trust transaction.

The deal values the combined company at over USD 10 billion in enterprise value and values Eaton's Mobility Group at approximately USD 5.1 billion. The transaction is scheduled to close in Q1 of CY2027, subject to approval by Dana shareholders and regulatory clearances.

Under the terms of the agreement, Eaton will receive a tax-free cash distribution of approximately USD 1.1 billion, which will be funded by newly issued debt from the mobility entity. Eaton shareholders will receive shares in the comb...