American Water and Essential Utilities have announced the intent to merge into a conglomerate worth $63 billion.
Essential, which owns Peoples Natural Gas company along with water utility company Aqua, would be absorbed by the New Jersey-based parent company of Pennsylvania-American Water in a $12 billion, all-stock transaction. American Water would retain 69% of the combined ownership while Essential would have the remaining 31%. The companies said in a joint news release that the merger would not trigger a raise in customer rates. They also don’t anticipate any “material changes to employee compensation or benefits.”
The deal is expected to close in early 2027. It must gain approval from federal antitrust authorities, the Pennsylvania Public Utility Commission and any other relevant agencies.
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