Two of the nation’s largest water utilities — American Water Works and Essential Utilities — announced plans to merge in an all-stock deal valued at about $40 billion, creating a single public water company serving nearly 5 million customers nationwide.
Under the agreement, according to a report from the Associated Press, Essential shareholders will receive 0.305 shares of American Water for each share they own.
Once the deal is finalized, American Water shareholders will hold about 69% of the new company, while Essential investors will own roughly 31%, per the report.
The combined company, to be called American Water, will operate in 17 states and 18 military installations from Hawaii to Pennsylvania, once the merger closes in early 2027.
Company officials said there will be no changes in customer rates, employee pay, or union contracts tied to the merger. The new company will be led by American Water CEO John Griffith, and Essential CEO Christopher Franklin will serve as executive vice chair of the board, according to the report.
Read the full Associated Press report here.
