American Water Works and Essential Utilities Announce Merger Agreement

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and Essential Utilities, Inc. announced the execution of a Merger Agreement. Under the terms of the agreement, Essential shareholders will receive 0.305 shares of American Water for each share of Essential they own. The transaction is expected to close by the end of the first quarter of 2027, subject to customary closing conditions. The merger is expected to create a combined company with a water and wastewater rate base of approximately $29.3 billion, serving 4.7 million connections across 17 states.

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About American Water Works Company, Inc.

American Water Works Company, Inc. is a prominent utility company that provides water and wastewater services across the United States. It primarily focuses on the operation and maintenance of water and wastewater utilities, ensuring the delivery of reliable clean water and proper treatment of wastewater for residential, commercial, and industrial customers. With a strong commitment to sustainability and community support, American Water Works is engaged in essential environmental stewardship practices to preserve natural resources. Serving millions of people, the company operates through subsidiaries in several states, playing a critical role in the water infrastructure sector. Its services ensure compliance with federal and state regulations, which safeguards public health and the environment. In the financial market, American Water Works is recognized for its stable operations and contributions to the utility sector, offering investors exposure to a critical and typically regulated industry that remains vital regardless of economic cycles.