The basics:

• American Water, Essential Utilities cleared the federal HSR antitrust waiting period
• Proposed merger would create a utility valued at about $63B
• Combined company would serve 4.7M water connections in 17 states
• Deal is expected to close by the end of Q1 2027

American Water Works Co. Inc. and Essential Utilities Inc. announced progress on their proposed merger Aug. 17.

The companies – headquartered in Camden and Bryn Mawr, Pa., respectively – said the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976 expired at 11:59 p.m. Aug. 14.

According to the U.S. Federal Trade Commission, the HSR Act requires companies to file premerger notifications with the FTC and the Justice Department’s Antitrust Division. The mandate also establishes waiting periods that must expire before mergers can move forward.

From the beginning

American Water and Essential Utilities Inc. announced their definitive merger agreement in October 2025.

The deal 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, according to the fall announcement.

Since then, the companies have received several regulatory approvals, including in Kentucky, Ohio and Virginia.

In American Water’s July 29 second quarter filing, President and CEO John Griffith said the company was “encouraged with the continuing progress we and Essential Utilities are making in merger integration planning and have received three state regulatory approvals for the merger so far.”

What’s to come

The deal is expected to close by the end of the first quarter of 2027, subject to customary conditions.

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.

The joint company will operate as American Water and have its headquarters in Camden, the utilities said when the deal was announced. The website also noted that Essential’s Bryn Mawr and Pittsburgh offices will “maintain a strong operational presence long term.”

Griffith will serve as president and CEO, while 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.

Continued investments

In the 2026 Q2 report, Griffith noted American Water “delivered solid results for the first half of the year.”

The company reported adjusted results for the quarter ended June 30, 2026, of $1.61 per share, compared to $1.49 per share for the same quarter in 2025. Additionally, American Water reported $2.62 per share for the year-to-date period ended June 30, 2026, compared with $2.51 per share for the same period in 2025.

American Water also said during the first six months of the year, it invested $1.8 billion in infrastructure improvements and growth, including $346 million for regulated acquisitions.

In June, the parent company of New Jersey American Water completed its $315 million acquisition of systems across eight states from Nexus Regulated Utilities LLC. That included the utility systems of Montague Township.

The company plans to invest approximately $3.7 billion across its footprint in 2026, including acquisitions.