Illinois Approves American Water Merger With Essential Utilities

The Illinois Commerce Commission has issued an order approving the merger of American Water Works Company and Essential Utilities, the two companies said Nov. 6. It is the fourth favorable regulatory action for the all-stock deal, which would create a utility with more than 4.7 million water and wastewater customer connections and more than 740,000 natural gas customer connections.

The companies still need sign-off from the remaining state utility commissions before they can close. They expect to complete the merger by the end of the first quarter of 2027, subject to those approvals and other customary conditions.

Which regulators have signed off so far

Illinois joins three states that had already approved the deal, according to the companies’ announcement:

• Kentucky Public Service Commission, April 21, 2026
• Public Utilities Commission of Ohio, May 13, 2026
• Virginia State Corporation Commission, June 22, 2026
• Illinois Commerce Commission, announced Nov. 6, 2026

The federal antitrust step is done. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which gives U.S. antitrust agencies time to review large deals before they close, expired on Aug. 14, 2026. Shareholders of both companies voted in favor of the merger earlier this year, and the companies described that approval as overwhelming.

Settlements in four more states

In Pennsylvania, North Carolina, Texas and New Jersey, the companies have reached settlement agreements in the merger approval cases. Each of these four still has to be reviewed and approved by that state’s public utility commission, so none of them counts as a final approval yet.

What the combined company would look like

American Water and Essential Utilities announced the all-stock merger on Oct. 27, 2025. The combined business would operate under the American Water name, with headquarters in Camden, New Jersey.

The two companies are already large on their own. American Water calls itself the largest regulated water and wastewater utility in the United States, serving about 14 million people through regulated operations in 14 states and on 19 military installations, with roughly 7,000 employees. Essential Utilities, which runs the Aqua and Peoples brands, serves about 5.5 million people in nine states with water, wastewater and natural gas service.

What it means for customers and shareholders

For customers, regulatory approval decides whether their local water or gas utility ends up under the American Water name, and each state commission reviews the deal for the utilities in its state. The announcement did not describe any rate changes tied to the merger.

For shareholders of both companies, each approval removes one of the conditions left before the deal can close. The companies list the remaining utility commission approvals among the conditions still outstanding, and their risk disclosures note that approvals could come with conditions, including required sales of assets.

What to watch next

The next steps are decisions from the commissions in Pennsylvania, North Carolina, Texas and New Jersey on the settlement agreements filed there, along with any other remaining state approvals. The companies have kept their target of closing by the end of the first quarter of 2027.

Source: PR Newswire