Approval Process ChallengesRegulatory reviews in at least seven states are expected, with approvals needed from both companies' shareholders and state and DOJ approvals, making the approval process a long road.
Credit Metrics And LeverageThe company is challenged by poor credit metrics mainly due to high leverage needed to support growth in the Peoples Gas segment.
Merger Premium ConcernsThe initial implied deal price was only a 5% premium from the previous close, and after AWK's post-deal sell-off, it is reduced to just a 2% premium, indicating a relatively disappointing M&A price for WTRG.