Aqua parent company announces $63B merger
According to a news release, American Water Works Company, Inc. and Essential Utilities, Inc. jointly announced that the two companies are looking to merge.
Essential Utilities, Inc. operates as the Aqua and Peoples brands, which include Aqua Ohio. Aqua Ohio serves over 500,000 people across the state, including here in the Valley.
The announcement indicates that each company's Board of Directors unanimously approved a definitive agreement to combine the two companies into an all-stock, tax-free merger.
The merger would turn the two companies into a regulated U.S. water and wastewater public utility, with an estimated combined value of approximately $40 billion and a combined enterprise value of approximately $63 billion.
Those values are based on closing stock prices as of October 24, 2025.
The transaction, according to the release, is expected to close by the end of the first quarter in 2027, subject to closing conditions and approvals.
Additionally, the combined company would be headquartered in Camden, New Jersey. The combined company will continue to use the name "American Water."
At this time, it is unknown what effect this will have on regional Aqua Ohio customers or employees at regional sites. 21 News has reached out to Aqua Ohio, American Water and the PUCO for additional information and will update as more information becomes available.
According to the website created to outline the merger, the new company created would serve 4.7 million connections across 17 states, including Ohio and Pennsylvania.
Both of the company heads are quoted in the release.
American Water President and Chief Executive Officer John Griffith said:
"This combination brings together two industry leaders united by our shared mission to provide safe, clean, reliable and affordable water and wastewater services to our customers. By joining forces with Essential, the combined company's enhanced scale and operational efficiency will support continued investment in our critical infrastructure, enabling us to continue providing superior customer service at affordable rates. We look forward to bringing together the talented teams of both companies to help solve the many water and wastewater challenges across the country and expand our customer base."
Additionally, Essential Chairman and Chief Executive Officer Christopher Franklin said:
"Throughout Essential's nearly 140-year history, we have consistently led with purpose to share a future rooted in sustainability, innovation, resilience and best-in-class service for our customers. We are confident that the combined company will build upon our longstanding track record of delivering safe and reliable services and be better positioned to solve today's challenges while creating a sustainable future. Together, we will have expertise, financial strength and regulatory credibility to continuously improve our infrastructure and meet the evolving needs of our customers. American Water and Essential will continue to enable our communities to thrive."
