CAMDEN, NJ & BRYN MAWR, PA — American Water Works Company and Essential Utilities have secured approval from Ohio utility regulators for their proposed merger, advancing a deal that would create one of the nation’s largest regulated water and wastewater utilities as consolidation accelerates across the infrastructure sector.
The Public Utilities Commission of Ohio approved the all-stock transaction, the companies said, marking the second state-level regulatory approval since the merger was announced in October 2025.
The combination would create a utility serving more than 4.7 million water and wastewater customer connections alongside more than 740,000 natural gas customer connections across multiple states.
The companies previously received approval in Kentucky in April, while shareholders of both firms approved the transaction earlier this year.
The merger is expected to close by the end of the first quarter of 2027, subject to additional regulatory approvals and federal antitrust clearance under the Hart-Scott-Rodino Act.
Under the terms of the transaction, the combined company will operate under the American Water name and remain headquartered in Camden, New Jersey.
The deal reflects continued consolidation within the regulated utility sector, where water providers have pursued larger operating footprints to manage rising infrastructure costs, aging pipeline systems, environmental compliance requirements, and long-term capital investment demands.
For Essential Utilities, the merger would further expand its transition beyond a traditional regional water utility model after its acquisition-driven push into natural gas distribution through prior deals.
American Water, already the largest publicly traded U.S. water and wastewater utility by customer count, would significantly expand its scale and geographic reach through the transaction.
The companies did not disclose additional conditions tied to the Ohio approval but stated the merger remains subject to customary closing requirements and approvals from remaining state utility commissions.
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