The proposed merger between American Water Works Company and Essential Utilities has cleared another regulatory hurdle, with the Virginia State Corporation Commission issuing an order of approval on 22 June 2026. The decision marks the third positive regulatory outcome for the transaction and the first in a state where both companies hold regulated water and wastewater operating licences.
Virginia's green light follows earlier endorsements from the Kentucky Public Service Commission last April and the Public Utilities Commission of Ohio last May. Shareholders of both companies had previously backed the deal by wide margins at special meetings held last February, with close to 95% of Essential Utilities votes cast in favour and near-unanimous support from American Water shareholders.
Under the terms of the all-stock transaction, announced in October 2025, the combined entity would serve more than 4.7 million water and wastewater customer connections, as well as over 740,000 gas customer connections. The merged company would operate under the American Water name and be headquartered in Camden, New Jersey.
The deal is expected to close by the end of the first quarter of 2027, though it remains contingent on a number of conditions. These include clearance under the Hart-Scott-Rodino Act and outstanding approvals from the remaining applicable public utility commissions. Together, the two utilities would form one of the largest regulated water and wastewater providers in the United States.
