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American Water and Essential Utilities Merger Clears Virginia Regulator

The Virginia State Corporation Commission has greenlit the proposed merger between American Water Works Company and Essential Utilities, marking a significant regulatory milestone for the all-stock transaction. This ruling represents the third major approval for the deal, which aims to consolidate two of the nation’s largest water and wastewater providers.

American Water and Essential Utilities Merger Clears Virginia Regulator
Photo: Bio & News

The Virginia decision is particularly notable as the first instance where regulators have signed off on the combination in a state where both entities currently maintain active, regulated operations. This follows successful regulatory clearances from the Kentucky Public Service Commission in April and the Public Utilities Commission of Ohio in May. Shareholders from both companies have already signaled their support, having voted overwhelmingly in favor of the transaction earlier this year.

Should the merger proceed to completion as expected by the end of the first quarter of 2027, the resulting entity will operate under the American Water brand, headquartered in Camden, New Jersey. The combined firm is projected to serve a massive footprint, encompassing over 4.7 million water and wastewater connections alongside 740,000 gas customer connections. While the path forward remains subject to further regulatory reviews and customary closing conditions, including clearance under the Hart-Scott-Rodino Act, the companies are maintaining their current trajectory toward integration.

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