
American Water Works will acquire Essential Utilities in an all-stock deal valued at $63 billion.
American Water Works is acquiring Essential Utilities in a $63 billion all-stock deal, creating one of the largest regulated water and wastewater utilities in the U.S. The combined company will serve about 4.7 million connections across 17 states, with Essential shareholders receiving 0.305 shares of American Water per share, a roughly 10% premium. The transaction is expected to be EPS-accretive in year one, support 7–9% dividend growth, and fund around $28 billion in infrastructure upgrades over five years, though it still faces integration and regulatory approval risks.
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