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American Water Works, Essential Utilities to merge
- On Monday, American Water Works Company, Inc. and Essential Utilities, Inc. agreed to an all-stock merger, with American Water shareholders owning 69% and the combined firm expected to close by the end of the first quarter of 2027.
- By joining forces, company executives said the merger combines expertise, financial strength and regulatory credibility to improve infrastructure and meet evolving customer needs, while supporting investment and efficiency.
- Based on stock prices as of Oct. 24, the combined entity is projected to have a market capitalization of $40 billion and an enterprise value of $63 billion, with Essential stockholders receiving 0.305 shares of American Water for each share at a 10% premium.
- The deal will be immediately accretive to American Water's EPS in year one, with Griffith continuing as president and CEO, Franklin transitioning to executive vice chair, and the combined board having 15 members.
- With roughly 4.7 million connections across 17 states and 18 military installations, the merged utility leverages an estimated combined rate base of $29.3 billion and includes Peoples Natural Gas, whose rate base grows over 10%.
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Indiana-American Water's parent company is merging with Essential Utilities to create a $40 billion utility behemoth that will bring in more than $29 billion a year in water and wastewater rates.
·Cherokee County, United States
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American Water, Essential Utilities Unite In Major Deal To Reshape US Water Market - American Water Works Co (NYSE:AWK), Essential Utilities (NYSE:WTRG)
American Water and Essential Utilities to merge, creating dominant, regulated water and wastewater utility with $40B market cap.
·New York, United States
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The Washington Post
The Washington PostAmerican Water Works, Essential Utilities to merge
American Water Works and Essential Utilities are merging in an all-stock deal that will create a water and wastewater public utility with an approximately $40 billion combined market capitalization.
·United States
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Total News Sources18
Leaning Left4Leaning Right0Center6Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 40%
C 60%
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