American Water and Essential Utilities’ merger approved by Kentucky commission

American Water (AWK) and Essential Utilities (WTRG) announced that the Kentucky Public Service Commission has approved the companies’ proposed merger, marking the first regulatory approval obtained in the path toward completing the combination of the two companies. The Kentucky PSC’s approval follows the approval of the transaction by shareholders of both companies at their respective special shareholder meetings held in February. The all-stock transaction will create a combined company serving more than 4.7 million water and wastewater customer connections and more than 740,000 gas customer connections. The combined company will operate under the American Water name and be headquartered in Camden, New Jersey. The merger is expected to close by the end of Q1 2027, but remains subject to customary closing conditions and required regulatory approvals.