(Reuters) -American Water Works will buy Essential Utilities in an all-stock deal valued at about $12.3 billion, according to Reuters calculations.
The two companies said on Monday the combined firm’s market value was about $63 billion, including debt, based on the stock closing prices on Friday.
Essential shareholders will get 0.305 shares of American Water for each share of Essential they own at the close of the deal, expected by the end of the first quarter of 2027.
The companies estimate the merger will add to American Water’s earnings per share in the first year following the deal’s close.
“By joining forces with Essential, the combined company’s enhanced scale and operational efficiency will support continued investment in our critical infrastructure,” said American Water CEO John Griffith.
As of Friday’s close, American Water Works had a market capitalization of $27.62 billion, while Essential Utilities was valued at $11.56 billion.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Devika Syamnath)
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