Eaton Reportedly Weighing Separation Of $5B Vehicle Unit

As per a report from Bloomberg News, Eaton is working with an adviser to explore a sale or spinoff of the unit.
Low-angle view of sign with logo on facade at office of power management company Eaton in Pleasanton, California, July 2, 2019.
Low-angle view of sign with logo on facade at office of power management company Eaton in Pleasanton, California, July 2, 2019. (Photo by Smith Collection/Gado/Getty Images)
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Jaiveer Shekhawat·Stocktwits
Published Jan 21, 2026   |   3:17 PM EST
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Eaton Corp. is reportedly considering strategic options for its vehicle unit, as the electrical equipment maker shifts its focus on high-growth businesses under its new chief executive officer. 

As per a report from Bloomberg News, Eaton is working with an adviser to explore a sale or spinoff of the unit. The unit could be worth as much as $5 billion, the report said, citing people familiar with the matter. 

Deliberations over the separation of the vehicle unit which makes products like controls and transmission systems are ongoing and there’s no certainty Eaton will separate the unit, the report added. 

Shares in the company edged higher by almost 1% at the time of writing.  

Get updates to this developing story directly on Stocktwits. 
 

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