Two top companies in the Pennsylvania utility market plan to merge.
American Water and Essential Utilities want to combine into a water, wastewater and natural gas company.
The combined company will use the American Water name and stay headquartered in New Jersey.
The combined enterprise will be valued at around $63 billion.
American Water President and Chief Executive Officer, John C. Griffith said, “This combination brings together two industry leaders united by our shared mission to provide safe, clean, reliable and affordable water and wastewater services to our customers. By joining forces with Essential, the combined company’s enhanced scale and operational efficiency will support continued investment in our critical infrastructure, enabling us to continue providing superior customer service at affordable rates. We look forward to bringing together the talented teams of both companies to help solve the many water and wastewater challenges across the country and expand our customer base.”
Essential Chairman and Chief Executive Officer, Christopher H. Franklin said, “Throughout Essential’s nearly 140-year history, we have consistently led with purpose to shape a future rooted in sustainability, innovation, resilience and best-in-class service for our customers. We are confident that the combined company will build upon our longstanding track record of delivering safe and reliable services and be better positioned to solve today’s challenges while creating a sustainable future. Together, we will have expertise, financial strength and regulatory credibility to continuously improve our infrastructure and meet the evolving needs of our customers. American Water and Essential will continue to enable our communities to thrive.”
Both boards of directors approved the merger unanimously. They say it will be tax-free.
The transaction is expected to be done in early 2027.
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