American Water & Essential Utilities to Merge in $63B ‘Mega-Deal’ – What Investors Need to Know
On Oct. 26, 2025, American Water Works Co. and Essential Utilities, Inc. surprised the utilities sector by announcing a definitive all-stock merger agreement Businesswire Investing. The companies said the combination creates the largest regulated water/wastewater utility in the U.S., serving roughly 14 million people in 14 states ts2.tech. According to the companies, shareholders of each firm unanimously approved the deal, which carries a pro forma market value of about $40 billion Marketscreener Nasdaq. American Water shareholders will receive 0.305 shares for each Essential share, equating to a ~10% premium to WTRG’s recent trading range Marketscreener. Post-merger, AWK investors own ~69% of the combined company and Essential investors ~31% Marketscreener.