American Water and Essential Utilities to Merge as a Leading Regulated U.S. Water and Wastewater Utility

Core Viewpoint - American Water Works Company, Inc. and Essential Utilities, Inc. have announced a definitive agreement for an all-stock, tax-free merger, creating 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 [1] Company Summary - The merger will combine American Water Works and Essential Utilities, enhancing their position in the regulated water and wastewater sector [1] - The transaction is structured as an all-stock merger, which is tax-free for the shareholders of both companies [1] Market Impact - The pro forma market capitalization of the combined entity is expected to be around $40 billion, indicating significant scale in the water utility market [1] - The combined enterprise value of the merger has not been fully disclosed but is implied to be substantial, reflecting the importance of the transaction in the industry [1]