06:25 AM EDT, 10/27/2025 (MT Newswires) -- American Water Works Company ( AWK ) and Essential Utilities ( WTRG ) announced Monday that their boards of directors have unanimously approved a definitive agreement to combine in an all-stock merger.

Under the agreement, Essential shareholders will receive 0.305 shares of American Water for each share of Essential upon closing of the transaction.

Once the merger is complete, American Water shareholders are expected to own about 69% of the combined company, while Essential shareholders will own about 31% on a fully diluted basis.

American Water President and Chief Executive Officer, John Griffith, will lead the combined company, which will be headquartered in Camden, New Jersey, and continue under the American Water name.

The transaction is expected to close by the end of Q1 of 2027 and be accretive to American Water's EPS in the first year after closing.

Upon closing, the company plans to conduct a review of strategic alternatives for its non-water and non-wastewater businesses.