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Ireland-based Power Management Company Eaton Corp. and Columbus-based global power dealer Cummins Inc. have announced a joint venture for automated transmissions for medium to heavy-duty vehicles. The venture, named Eaton Cummins Automated Transmission Technologies, will be worth $2.1 billion and will see Cummins pay Eaton $600 million for a 50% stake in the venture.

The formation of the venture is subject to regulatory approval and customary closing conditions. It is expected that the deal will be finalized in the third quarter of 2017. As per the agreement, Cummins will consolidate joint venture results as part of Components business segment.

Speaking during the announcement, Eaton Chairman and CEO, Craig Arnold, said that the joint venture will see the two companies leverage their strengths and experience to deliver the best value to customers.

“Our customers want powertrain solutions that combine the best technology, performance, and quality,” said Arnold. “This joint venture is the best way to deliver on these expectations. We want to leverage our technical strengths and industry experience to provide superior automated transmission technology to our customers.”

Cummins Inc. Chairman and CEO, Tom Linebarger, echoed Arnold’s comments, saying the intention behind the joint venture is to become the world’s leading powertrain supplier.

“We want to make Eaton Cummins Automated Transmission Technologies the world’s leading supplier of powertrain by delivering highly advanced automated transmissions,” he said. “When all is done, we want to provide an integrated powertrain and service network that will benefit our global customers like never before.”

The joint venture will focus on design, assembly, sales, and support of future medium-duty to heavy-duty automated transmissions.

Eaton is a power management company that mostly serves aerospace, filtration, hydraulics, electrical, industrial, vehicle, and plastic markets. It has customers in more than 175 countries and currently employs about 95,000 workers globally. In the U.S., the company has plants in Auburn and South Bend, both in Indiana. It also has an electrical supply store in Indianapolis. Last year, the company earned $1.9 billion on sales of $19.7 billion.

Cummins, meanwhile, is a maker, designer, distributor, and seller of diesel and natural gas engines. It has customers in more than 190 counties and currently employs about 55,000 workers worldwide. In 2016, the company earned $1.39 billion on sales of $17.5 billion.

Representatives from the two companies have assured stakeholders that the joint venture will not affect either of the company’s employees or production.