American Water Works, Essential Utilities to merge

Core Viewpoint - American Water Works and Essential Utilities are merging in an all-stock deal to create a public water utility valued at approximately $40 billion [1] Company Structure and Ownership - Essential shareholders will receive 0.305 shares of American Water for each share they own, resulting in American Water shareholders owning about 69% and Essential shareholders owning approximately 31% of the combined company [2] - The combined company's board will consist of 15 members, including 10 directors from American Water and 5 designated by Essential [5] Operational Impact - There will be no change in customer rates associated with the merger, and employee compensation or benefits are not expected to materially change [2][3] - The combined company plans to review strategic options for its non-water and non-wastewater businesses after the merger closes [2] Leadership and Headquarters - John Griffith will serve as president and CEO of the combined company, while Christopher Franklin will become executive vice chair for the board [4] - The headquarters will be located in Camden, NJ, with Essential's offices in Bryn Mawr and Pittsburgh maintaining a strong operational presence [6] Timeline and Market Reaction - The merger is expected to close by the end of the first quarter of 2027, pending shareholder and public utility commission approvals [6] - Following the announcement, shares of American Water Works fell by 3.5%, while Essential Utilities' stock experienced a slight decline [6]