American Water Works Company, Inc. and Essential Utilities, Inc. issued a joint press release on November 6, 2026, announcing that the Illinois Commerce Commission approved their proposed all-stock merger, marking the fourth state regulatory approval received for the transaction.

Key Highlights

  • Fourth regulatory approval: The Illinois Commerce Commission issued an order approving the proposed merger, following earlier approvals from Virginia, Ohio, and Kentucky.
  • Prior state approvals: Virginia State Corporation Commission approved on June 22, 2026; Public Utilities Commission of Ohio on May 13, 2026; and Kentucky Public Service Commission on April 21, 2026.
  • Settlement agreements reached: Agreements in merger approval proceedings have been reached in Pennsylvania, North Carolina, Texas, and New Jersey, each still subject to review and approval by the applicable public utility commission.
  • HSR waiting period expired: The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired on August 14, 2026.
  • Shareholder approval: Shareholders of both companies "overwhelmingly approved the transaction earlier this year," according to the filing.
  • Combined scale: The all-stock merger, announced October 27, 2025, is expected to create a combined company serving more than 4.7 million water and wastewater customer connections and more than 740,000 natural gas customer connections.
  • Expected closing: The merger is expected to close by the end of the first quarter of 2027, subject to remaining regulatory approvals and customary closing conditions.

Illinois Commerce Commission Approval Advances American Water and Essential Utilities Combination

According to the joint announcement, the Illinois Commerce Commission's order approving the merger represents the fourth favorable regulatory action completed in the review process. The companies disclosed that approvals from Virginia, Ohio, and Kentucky had already been secured earlier in 2026, with the Illinois decision now added to that list. The filing notes that settlement agreements have also been reached in Pennsylvania, North Carolina, Texas, and New Jersey, though each of those agreements remains subject to review and approval by the applicable public utility commission.

The all-stock merger was originally announced on October 27, 2025, according to the filing. If completed, the combined company would operate under the American Water name and be headquartered in Camden, New Jersey, serving more than 4.7 million water and wastewater customer connections and more than 740,000 natural gas customer connections. American Water (NYSE:AWK) is described in the filing as "the largest regulated water and wastewater utility company in the United States," with regulated operations in 14 states and on 19 military installations. Essential Utilities (NYSE:WTRG) operates under the Aqua and Peoples brands across nine states, serving approximately 5.5 million people.

The filing states that the merger is expected to close by the end of the first quarter of 2027, but that the transaction "remains subject to customary closing conditions, including, among others, required regulatory approvals, including approval from the remaining applicable public utility commissions." The announcement includes forward-looking statements that the companies caution are not guarantees of any outcomes and are subject to risks and uncertainties described in each party's regulatory filings.

What Was Disclosed

The November 6, 2026 press release disclosed that the Illinois Commerce Commission approved the American Water and Essential Utilities merger, the fourth state regulatory approval, with settlement agreements pending in four additional states and a projected close by end of first quarter 2027.