American Water is merging with Essential Utilities to form the largest public water utility in the United States. The transaction is targeted to close in the first quarter of 2027.
The combined company would serve a broad customer base across multiple states. American Water expects long-term earnings per share and dividend growth of 7 to 9 percent annually after the deal closes. Synergies and a wider geographic footprint could support above-trend earnings growth once the merger is complete.