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Essential Utilities, Inc. (NYSE: WTRG) Merger Insights and Financial Outlook
Financial Modeling Prep· 2025-10-27 22:07
Core Insights - Essential Utilities, Inc. is involved in a significant merger with American Water Works Company, valued at approximately $63 billion, including debt, which aims to enhance service offerings and operational efficiencies [2][5] - Northcoast Research has set a price target of $46 for Essential Utilities, indicating a potential upside of about 11.62% from its current price of $41.21 [1][5] - Legal investigations are ongoing regarding potential breaches of fiduciary duty and the fairness of the sale terms for Essential shareholders, led by Ademi Firm and Halper Sadeh LLC [3][5] Company Overview - Essential Utilities provides water and wastewater services and has a current market capitalization of approximately $11.55 billion [4] - The stock price of Essential Utilities has shown minor fluctuations, currently at $41.19, with a trading volume of 2,985,795 shares today [4] Merger Details - The merger structure involves Essential shareholders receiving 0.305 shares of American Water for each share they own, resulting in American Water shareholders controlling about 69% of the combined entity, while Essential shareholders will own approximately 31% [2]