American Water and Essential Utilities agreed to combine in an all-stock merger valued at about $63 billion enterprise value, creating the largest regulated water and wastewater utility in the United States.
Essential shareholders will receive 0.305 American Water shares for each Essential share, and will own about 31% of the combined company, while American Water shareholders will hold around 69% after closing.
The transaction is expected to close by the end of the first quarter of 2027, subject to regulatory approvals.