Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 65

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 65
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financial condition, and cash flows.

If the merger does not qualify as a “reorganization” under Section 368(a) of the Code, the U.S. holders of Essential common stock may be required to pay additional U.S. federal income taxes.

American Water and Essential intend for the
merger to qualify as a “reorganization” within the meaning of Section 368(a) of the Code for U.S. federal income tax purposes. Nevertheless, it is not a condition to American Water’s obligation or Essential’s obligation
to complete the transactions that the merger qualify as a “reorganization.”

American Water and Essential have not sought and will not seek
any ruling from the IRS regarding any matters relating to the merger and the other transactions contemplated by the merger agreement, and, as a result, there can be no assurance that the IRS would not assert, or that a court would not sustain, a
position contrary to any of the conclusions herein. If the IRS or a court determines that the merger does not qualify as a “reorganization” within the meaning of Section 368(a) of the Code, a U.S. holder (as defined in “The Merger—U.S. Federal

40

Income Tax Considerations”) of Essential common stock generally would recognize taxable gain or loss upon the exchange of Essential common stock for American Water common stock pursuant to the merger. U.S. holders of Essential common stock should consult their tax advisors as to the U.S. federal income tax consequences of the merger, including the income tax consequences arising from such U.S. holders’ particular circumstances, and as to any estate, gift, state, local, or non-U.S.tax consequences arising out of the merger. See “ The Merger—U.S. Federal Income Tax Considerations” beginning on page 114 for a more complete discussion of the U.S. federal income tax consequences of the merger. Risks Related to the Combined Company After Completion of the Merger If completed, the merger may not achieve its anticipated results, and the combined company may be unable to successfully integrate American Water’s and Essential’s operations and/or operate in the manner expected. American Water and Essential entered into the merger agreement with the expectation that the merger will result in various benefits, including, among other things, increased efficiencies of scale and size, increased geographic diversity, greater long-term growth opportunities for employees of the combined company, and other operating efficiencies. Achieving the anticipated benefits of the merger is subject to a number of uncertainties, including whether American Water’s and Essential