Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 43

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 43
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 compensation that is based on or otherwise related to the completion of the merger.

Interests of the Essential Directors and Executive Officers in the Merger

In considering the recommendation of the Essential board to approve the merger
agreement and the transactions contemplated thereby, including the merger, Essential shareholders should be aware that Essential’s directors and executive officers have interests in the merger that may be different from, or in addition to, the
interests of Essential shareholders generally, including treatment of outstanding Essential equity awards in connection with

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the transactions contemplated by the merger agreement, potential severance benefits, and rights to ongoing indemnification and insurance coverage. The Essential board was aware of these interests and considered them, among other matters, in evaluating and negotiating the merger agreement and in reaching its decision to (i) determine that it is advisable, fair to, and in the best interests of Essential and its shareholders to enter into the merger agreement and to consummate the transactions contemplated by the merger agreement, including the merger, (ii) approve, adopt, and declare advisable the merger agreement, and (iii) direct that the merger agreement proposal, the merger-related compensation proposal, and the Essential adjournment proposal be submitted to the Essential shareholders for approval at the Essential special meeting. These interests are discussed in more detail in “ The Merger—Interests of Directors and Executive Officers in the Merger—Interests of Essential Directors and Executive Officers in the Merger” beginning on page 105. Accounting Treatment The merger, if it occurs, will be accounted for as a purchase of Essential by American Water under the acquisition method of accounting in accordance with GAAP. For more information regarding the accounting treatment, see “ The Merger—Accounting Treatment of the Merger” beginning on page 112. No Appraisal or Dissenters’ Rights in the Merger Under Delaware law, American Water shareholders will not be entitled to any appraisal or dissenters’ rights in connection with the merger or any other transactions described in this joint proxy statement/prospectus. Under Pennsylvania law, Essential shareholders will not be entitled to any appraisal or dissenters’ rights in connection with the merger or any other transactions described in this joint proxy statement/prospectus. Regulatory Matters Relating to the Merger To complete the merger, American Water and Essential must make filings with and obtain authorizations, approvals or consents from a number of federal and state public utility, antitrust, and other regulatory entities, including filings pursuant to the HSR Act, and the rules and regulations promulgated thereunder