The Illinois Commerce Commission has approved the proposed merger of American Water Works and Essential Utilities, the companies said on 6 November 2026, the fourth regulatory approval for an all-stock combination of two of the largest US water utilities.
Why American Water Works Company, Inc. is buying Essential Utilities, Inc.
The combined company would serve more than 4.7 million water and wastewater customer connections and more than 740,000 natural gas connections, operating under the American Water name from Camden, New Jersey.
Deal terms and financing
Essential Utilities shareholders will receive 0.305 American Water shares for each share, which the companies said at announcement implied a premium of about 10% based on 60-day average prices. American Water holders would own about 69% of the combined group and Essential holders about 31%. The companies cited a pro forma market capitalisation of about US$40bn and a combined enterprise value of about US$63bn.
Regulatory approvals and timing
Illinois follows approvals from the Kentucky Public Service Commission on 21 April, the Public Utilities Commission of Ohio on 13 May and the Virginia State Corporation Commission on 22 June 2026. Settlement agreements have been reached in Pennsylvania, North Carolina, Texas and New Jersey, each still subject to commission approval. The HSR waiting period expired on 14 August 2026 and shareholders of both companies have approved the merger. Closing is expected by the end of the first quarter of 2027.
Market context
The merger was announced on 27 October 2025. American Water, the largest regulated US water and wastewater utility, serves about 14 million people in 14 states and on 19 military installations; Essential Utilities is based in Bryn Mawr, Pennsylvania.
