RWE AG, a large multi-utility company whose core businesses are electricity, gas, water and environmental services, has announced the acquisition of New Jersey-based American Water Works Company by its Thames Water subsidiary. American Water will be fully consolidated into the RWE Group in 2003, and the water division will then contribute more than 25% to the Group's operating results.

American Water provides water and wastewater services to a population of 15 million in 27 US states and three Canadian provinces. Looking ahead, American Water will oversee RWE's water business in North and South America as a wholly-owned subsidiary of Thames Water. Bill Alexander, Thames Water's CEO, has been appointed chairman, president and CEO of American Water. He will hold this role in addition to his current responsibilities. The acquisition enables Thames Water-RWE Group to increase its customer base to approximately 70 million worldwide, consolidating its position as No. 3 in the global water market.