American Water And Essential Utilities Announce $63 Bln All-Stock Merger

(RTTNews) - Essential Utilities, Inc. and American Water Works Company, Inc. have announced plans to merge in a tax-free, all-stock deal, creating one of the biggest regulated water and wastewater utilities in the United States.

Approved by both boards unanimously, the deal values the combined company at approximately $63 billion, with a market capitalization of about $40 billion based on closing prices as of October 24, 2025.

Essential shareholders will receive a 10 percent premium, or 0.305 shares of American Water, for each share they own under the terms of the agreement.

Nearly 69 percent of the combined business, which will retain the American Water name and have its headquarters in Camden, New Jersey, will be owned by American Water shareholders upon the deal's closure.

John C. Griffith, the CEO of American Water, will head the merged business, and Christopher H. Franklin, the CEO of Essential, will be the board's executive vice chair.

A price base of $29.3 billion will be created by the merger, which will combine about 4.7 million water and wastewater connections from 17 states and 18 military installations.

According to the companies, the merger will increase infrastructure investment, boost long-term earnings and dividend growth of 7 to 9 percent, and solidify commitments to affordability, employee stability, and community involvement.

Depending on shareholder and regulatory approvals, the deal is expected to be completed by the end of the first quarter of 2027.