In a decisive move that paves the way for the creation of a U.S. water utility titan, shareholders of American Water Works Company and Essential Utilities overwhelmingly approved all merger-related proposals during special meetings held on Tuesday.
The voting results, filed with the U.S. Securities and Exchange Commission, revealed near-unanimous support for the transaction. Approximately 99% of American Water’s shares present at the meeting approved the share issuance, while nearly 95% of Essential Utilities’ shares were cast in favor of the merger.
The all-stock transaction, originally announced in late 2025, is valued at approximately $63 billion (including debt). Once combined, the entity will operate under the American Water name and solidify its position as the largest regulated water and wastewater utility in the United States.
Key Transaction Highlights:
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Scale: The combined company will serve approximately 4.7 million service connections across 17 states and 18 military installations.
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Infrastructure Commitment: The new entity plans to invest $28 billion over the next five years in infrastructure renewal, resiliency, and water quality.
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Portfolio Diversification: The merger includes Essential Utilities’ Peoples Natural Gas business, providing a diversified revenue stream and a growing natural gas rate base.
Upon the merger’s completion, John C. Griffith, current President and CEO of American Water, will lead the combined company. Essential Utilities Chairman and CEO Christopher H. Franklin is slated to become the Executive Vice Chair of the Board.
While the company will be headquartered in Camden, New Jersey, it will maintain a significant operational presence in Bryn Mawr and Pittsburgh, Pennsylvania, to support the legacy Aqua and Peoples service territories.
Despite the landslide shareholder approval, the merger still faces a rigorous regulatory gauntlet. The companies expect the deal to close by the end of the first quarter of 2027, pending:
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Antitrust Clearance: Review under the Hart-Scott-Rodino Act.
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State Approvals: Regulatory green-lights from public utility commissions in multiple jurisdictions.
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Customary Closing Conditions: Finalization of tax-free status for the all-stock exchange.
