The Illinois Commerce Commission has approved the American Water and Essential Utilities merger, marking a key regulatory step toward the 2027 deal completion as the firms finalize settlement agreements across multiple states.
The Illinois Commerce Commission approved the all-stock merger with Essential Utilities, the fourth favorable regulatory decision, and settlements were reached in four more states. This lowers deal-execution risk for American Water, which will absorb Essential and gain more than 740,000 natural gas customer connections, supporting the share price. Closing is still expected only by the end of Q1 2027 and remains subject to remaining state approvals.
The Illinois Commerce Commission issued an order approving the proposed all-stock merger between American Water and Essential Utilities, the fourth favorable regulatory action for the deal.
Not yet. The companies expect closing by the end of the first quarter of 2027, but it remains subject to remaining public utility commission approvals and customary closing conditions.
Each regulatory step toward the all-stock merger narrows the gap between Essential's share price and the deal consideration in American Water stock. The Illinois approval plus settlements in Pennsylvania, North Carolina, Texas and New Jersey raise the probability the transaction closes as planned by the end of Q1 2027, which is positive for WTRG holders.
The Illinois approval is the fourth favorable regulatory action, moving the all-stock merger with American Water closer to completion and reducing the risk that the deal fails, which supports Essential's share price as it converges toward the merger terms.
American Water Works and Essential Utilities have received approval from the Illinois Commerce Commission for their proposed all-stock merger. This marks the fourth regulatory milestone for the deal, which aims to combine the two utility giants to serve over 4.7 million water and wastewater connections. While shareholders have already approved the transaction, the companies continue to work toward a targeted closing date by the end of the first quarter of 2027.
The Illinois Commerce Commission issued an order approving the proposed all-stock merger between American Water and Essential Utilities, the fourth favorable regulatory action for the deal.
Not yet. The companies expect closing by the end of the first quarter of 2027, but it remains subject to remaining public utility commission approvals and customary closing conditions.