Essential Utilities And American Water Win Illinois Approval — Other State Reviews Remain Pending
The all-stock deal would combine more than 4.7 million water and wastewater connections under the American Water name.
Essential Utilities, which provides water, wastewater and natural gas service under the Aqua and Peoples brands, and American Water won Illinois merger approval, the companies said Friday in a joint release filed with the SEC. The Illinois Commerce Commission’s order marks the fourth favorable regulatory action for the pending all-stock deal, with settlement agreements in other states still awaiting commission approval.
Water And Gas Under One Name
The proposed business would have more than 4.7 million connections for water and wastewater service, plus more than 740,000 natural gas customer connections. American Water would be the combined company’s name, with headquarters in Camden, New Jersey.
American Water’s regulated operations supply water and wastewater services to approximately 14 million people across 14 states and 19 military installations. Essential serves approximately 5.5 million people across nine states through Aqua and Peoples. Those population figures measure people served, rather than the customer connections used to describe the proposed combined utility.
Essential’s business includes a substantial Pennsylvania concentration. Aqua Pennsylvania generated about 57% of its regulated water segment’s operating revenue in 2025, according to its annual report. The Peoples subsidiaries supply natural gas to approximately 747,000 customers, with about 95% of Essential’s gas customers in western Pennsylvania.
Settlements Still Need State Sign-Off
Pennsylvania, North Carolina, Texas and New Jersey have settlement agreements in their merger proceedings. Each remains subject to its respective utility commission’s review and approval; reaching a settlement does not complete that state’s approval process.
Illinois joins Kentucky, Ohio and Virginia among states that have approved the transaction. Kentucky’s Public Service Commission approved it on April 21, 2026; Ohio’s Public Utilities Commission on May 13, 2026; and Virginia’s State Corporation Commission on June 22, 2026.
The federal antitrust waiting period expired on August 14, 2026. Shareholders of both companies also approved the merger earlier this year. The companies announced the all-stock transaction on October 27, 2025.
The companies continue to expect completion by the end of the first quarter of 2027, pending the remaining required regulatory approvals.
Sources
- 425 — American Water Works Company, Inc. re: Essential Utilities, Inc. (WTRG) — SEC EDGAR
- Essential expects American Water merger close by end of Q1 2027 while targeting $8.7B five-year capex (NYSE:WTRG) — seekingalpha.com
- American Water and Essential Utilities Proposed Merger Progresses with Approval from the Illinois Commerce Commission — Yahoo Finance
- WTRG Q3 Earnings Surpass Estimates on Rate Recovery, Gas Growth — Yahoo Finance
- Essential Utilities, Inc. (WTRG) Stock Forecasts — Yahoo Finance
- Essential Utilities' Merger With American Water Nearing Close | Morningstar — morningstar.com
More on Essential Utilities
- Essential Utilities Includes American Water Accounts In Registration As Stock Merger Remains Pending
- Essential Utilities And American Water Strike New Jersey Settlement With Every Party, Including Rate Counsel
- Essential Utilities Third-Quarter Profit Rises To $103.8 Million, But Nine-Month Earnings Fall
