German Utility to Buy American Company

German utility RWE will pay $4.6 billion in cash for American Water Works Co., the largest publicly traded U.S. water company, and said it may make more acquisitions in the U.S.

American Water, which supplies fresh water to more than 10 million people in 23 states, agreed to the deal that values it at $46 a share. RWE also would assume $3 billion in debt.

RWE last year acquired Britain’s Thames Water for $9.8 billion, creating the world’s third-largest water firm.

Voorhees, N.J.-based American Water will become a unit of Thames Water, which also has business in the U.S., RWE said.

Shares of American Water Works jumped $6.51 to close at $40.63 on the New York Stock Exchange.