The Public Utilities Commission of Ohio has approved the proposed merger between American Water Works Company (NYSE: AWK) and Essential Utilities (NYSE: WTRG), marking the second regulatory approval for the transaction.

The companies previously received approval from Kentucky on April 21, 2026. Shareholders of both companies approved the all-stock merger with overwhelming margins earlier this year.

The merger, announced October 27, 2025, will create a combined company serving more than 4.7 million water and wastewater customer connections and more than 740,000 gas customer connections. The combined entity will operate under the American Water name and be headquartered in Camden, New Jersey.

The transaction is expected to close by the end of the first quarter of 2027, subject to customary closing conditions including Hart-Scott-Rodino Act clearance and additional regulatory approvals from all applicable public utility commissions.

American Water is the largest regulated water and wastewater utility company in the United States, serving approximately 14 million people across 14 states and 18 military installations. Essential Utilities operates as the Aqua and Peoples brands, serving approximately 5.5 million people across nine states with water, wastewater, and natural gas services.