American Water Works Company, Inc. announced that its acquisition by Thames Water, the water division of RWE, was completed this morning. The transaction received all required approvals from American Water Works' shareholders and regulatory agencies.
Pursuant to the acquisition, each outstanding share of American Water Works' common stock has been converted into the right to receive $46.00 per share without interest.
Going forward, American Water will oversee RWE's water business in North and South America as a wholly owned subsidiary of Thames Water. Thames Water's CEO Bill Alexander has been appointed Chairman, President and CEO of American Water effective immediately, a role he will hold in addition to his current responsibilities as CEO of Thames Water plc.
Marilyn Ware, former Chairman of the Board of American Water Works said, "This acquisition represents a successful implementation of a well designed strategic plan that offers benefits for our customers, our shareholders, and our employees. Our customers gain access to new technologies, research and development, and our new partners' global experience in service, customer satisfaction and security."
Retiring President and CEO Jim Barr said, "I am tremendously proud of our employees and their accomplishment in building the largest water services company in America. Joining forces with Thames Water and RWE, the third largest water company in the world, will enhance our ability and continue our commitment to address water resource issues."
Bill Alexander, the new Chairman, President and CEO of American Water said, "American Water and Thames Water, through our combined experience and know-how, will continue the tradition of providing customers with the superior quality service they deserve."
American Water Works also announced that its Board of Directors had declared a "stub period" dividend equal to $0.2153333 per share on its common stock in connection with the closing of the merger.
The "stub period" dividend is payable to stockholders of record as of the close of trading on the New York Stock Exchange on Jan. 9, 2003, the trading day immediately preceding the closing date of the merger. The "stub period" dividend is expected to be paid within 15 days after the closing date of the merger.