The board of GKN plc has announced that the company has reached agreement with Dana Incorporated to combine GKN’s Driveline business and Dana to create Dana plc, a global leader in vehicle drive systems.

GKN says that this represents an acceleration of GKN’s strategy of separating its aerospace and driveline businesses, while also providing improved value to its shareholders. Anne Stevens, Chief Executive of GKN, and Richard Parry-Jones, independent non-executive director of GKN, will become non-executive directors of Dana plc.

‘This combination of GKN Driveline and Dana will create a US and UK led global market leader in vehicle drive systems,’ said Mike Turner, chairman of GKN. ‘The synergies between these two businesses and our complementary product portfolios make this a great deal for GKN shareholders.’

GKN ads that it is continuing to pursue the sale of its non-core businesses, including powder metallurgy.

This story uses material from GKN, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.