Oct 27 (Reuters) - American Water Works ( AWK ) will buy

Essential Utilities ( WTRG ) in an all-stock deal valued at

about $12.3 billion, according to Reuters calculations.

The two companies said on Monday the combined firm's market

value was about $63 billion, including debt, based on the stock

closing prices on Friday.

Essential shareholders will get 0.305 shares of American

Water for each share of Essential they own at the close of the

deal, expected by the end of the first quarter of 2027.

The companies estimate the merger will add to American

Water's earnings per share in the first year following the

deal's close.

"By joining forces with Essential, the combined

company's enhanced scale and operational efficiency will support

continued investment in our critical infrastructure," said

American Water CEO John Griffith.

As of Friday's close, American Water Works ( AWK ) had a market

capitalization of $27.62 billion, while Essential Utilities ( WTRG ) was

valued at $11.56 billion.