American Water Works Company, Inc. and Essential Utilities, Inc. have confirmed that shareholders of both companies have approved all proposals linked to their previously announced merger, marking a key step forward in the transaction.
The approvals were granted during special shareholder meetings held on 10 February 2026. Voting results showed strong support from investors on both sides, with nearly all American Water shares represented at the meeting backing the share issuance required for the transaction, and close to 95% of votes cast by Essential Utilities shareholders supporting the merger.
With this milestone completed, the companies will now focus on securing the remaining approvals needed to finalise the combination. The merger is still targeted to close by the end of the first quarter of 2027, subject to customary regulatory and closing requirements.
Additional details shared with investors outline how the combined company is expected to be structured following completion. The organisation will continue to operate under the American Water name, with its corporate headquarters located in Camden, New Jersey. Essential Utilities’ existing offices in Bryn Mawr and Pittsburgh are planned to maintain a long-term operational role within the broader company.
Leadership and governance arrangements have also been defined. American Water President and CEO John Griffith is set to serve as President and CEO of the combined company, while Essential Utilities Chairman and CEO Chris Franklin will become Executive Vice Chair of the Board. The future executive team is expected to include senior leaders from both companies, with continuity for American Water’s current executive structure and new strategic roles for Essential Utilities executives.
The transaction is structured as an all-stock, tax-free merger with a fixed exchange ratio, resulting in pro forma ownership of approximately 69% for American Water shareholders and 31% for Essential Utilities shareholders. The combined company is expected to have a market capitalisation of around USD 40 billion, creating a larger regulated platform focused on long-term investment, operational efficiency and financial stability.
Until all remaining conditions are met, American Water and Essential Utilities will continue to operate as separate companies, with further updates anticipated as the process advances.
