American Water and Essential Utilities Proposed Merger Progresses with Approval from the Virginia State Corporation Commission

The Virginia State Corporation Commission has issued an order approving the proposed all-stock merger between American Water Works Company, Inc. and Essential Utilities, Inc. This regulatory milestone represents the third state-level approval for the transaction and the first in a jurisdiction where both entities maintain regulated water and wastewater operations. The deal is expected to significantly consolidate the U.S. utility market, creating a combined entity that serves millions of customers across multiple states.

The Virginia State Corporation Commission has approved the proposed merger between American Water Works Company, Inc. and Essential Utilities, Inc., marking the third regulatory victory for the deal. This follows previous approvals from the Kentucky Public Service Commission in April 2026 and the Public Utilities Commission of Ohio in May 2026. The Virginia decision is a notable milestone as it represents the first regulatory clearance in a state where both companies currently operate regulated water and wastewater systems.

The all-stock merger, originally announced in October 2025, will result in a combined entity operating under the American Water name and headquartered in Camden, New Jersey. The transaction will consolidate a massive service footprint, resulting in more than 4.7 million water and wastewater customer connections and over 740,000 gas customer connections. American Water brings its extensive history and operations in 14 states to the deal, while Essential Utilities contributes its Aqua and Peoples brands, which serve 5.5 million people across nine states.

The merger is currently slated to close by the end of the first quarter of 2027, pending further regulatory hurdles and customary closing conditions. These include obtaining clearance under the Hart-Scott-Rodino Act and securing approvals from the remaining state public utility commissions within their service territories. The companies emphasize that the combination will allow them to leverage national scale and technical expertise to provide safe, reliable, and affordable services to their expanded customer base.