American Water Works Co. and Essential Utilities Inc. have received the first regulatory approval for their proposed merger. 

The Kentucky Public Service Commission approved the move, the companies announced April 22. 

Camden-based American Water and Essential Utilities, headquartered in Bryn Mawr, Pa., unveiled the proposed merger in October 2025. 

The all-stock, tax-free transaction would create a leading regulated U.S. water and wastewater public utility with a pro forma market capitalization of approximately $40 billion and a combined enterprise value of approximately $63 billion, based on closing stock prices as of Oct. 24, 2025. 

The joint company will serve 4.7 million combined connections across 17 states. It will boast $29.3 billion in combined water and wastewater rate base, according to a site dedicated to the merger. 

It will also serve more than 740,000 gas customer connections. 

Staying put

The company will operate as American Water and have its headquarters in Camden. The website also noted that Essential’s Bryn Mawr and Pittsburgh offices will “maintain a strong operational presence long term.” 

American Water President and CEO John Griffith will maintain those titles with the combined company. Essential Chairman and CEO Christopher Franklin will serve as executive vice chair of the board of directors and as executive sponsor of the integration task force. 

“This combination will create a company that is well positioned to grow and meet the evolving needs of our customers and the communities we serve,” Griffith said in a video posted on the site. 

Franklin added that “there will be no immediate change in customer rates as a result of the merger.” 

The deal is expected to close by the end of the first quarter of 2027. The transaction is subject to customary closing conditions and regulatory approvals, including approval from public utility commissions such as Kentucky’s. 

The utilities added that shareholders of both companies “overwhelming” approved the merger in February. 

“Together we’re building something extraordinary,” Griffith said. “We can’t wait to get started.”