On 27 October 2025, American Water Works Company and Essential Utilities announced their plans to merge in an all-stock, tax-free transaction with an estimated equity value exceeding US$12 billion. The combined company—which includes water, wastewater, and natural gas platforms—procured US$6.7 billion in total revenues in 2024. The merger is anticipated to be completed in Q1 2027, pending state regulatory approvals. Following the merger, American Water shareholders will own 69% of the combined entity, while Essential shareholders will hold 31%. American Water will assume executive control, and the corporate headquarters will be located in Camden, New Jersey.
This deal is the largest U.S.-based consolidation of investor-owned utilities tracked by Bluefield to date, both in terms of combined connections and total enterprise value. Its unprecedented scale represents a significant realignment of private participation within the U.S. municipal water sector.
