Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 108

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 108
---
 Essential, Essential may provide information to, and enter into discussions or negotiations with, a 
 third party regarding such an acquisition, in certain circumstances as further described in “The Merger Agreement—No Solicitation by American Water or Essential” beginning on page 133;                                                                 |

69

| • |     | the fact that Essential engages in some lines of business that are different than the lines of business that               
 American Water currently engages in, and the merger will broaden the mix of services that American Water currently offers; |

| • |     | completion of the merger is subject to American Water shareholders approving the share issuance proposal and                         
 Essential shareholders approving the merger agreement proposal, and the risk that one or both of such approvals may not be obtained; |

| • |     | the merger agreement imposes certain restrictions on American Water’s operations until completion of the                                                              
 merger, as more fully described in “The Merger Agreement—Conduct of Business Prior to the Effective Time—Conduct of American Water’s Business” beginning on page 130; |

| • |     | certain of American Water’s current directors and executive officers have interests in the merger that may                                                                                                           
 be different from, or in addition to, those of American Water shareholders generally, as more fully described in “The Merger—Interests of Directors and Executive Officers in the Merger—Interests of American Water 
 Directors and Executive Officers in the Merger” beginning on page 104;                                                                                                                                               |

| • |     | American Water and Essential will incur substantial costs and expenses in connection with the transactions           
 contemplated by the merger agreement, including, among others, legal, financial advisory, and accountants’ fees; and |

| • |     | the risks of the type and nature described under “Risk Factors” beginning on page 35 and the         
 matters described under “Cautionary Note Regarding Forward-Looking Statements” beginning on page 33. |

The American Water board believes that, overall, the potential benefits and factors that weighed positively in favor of the transactions contemplated by the merger agreement to American Water shareholders outweigh the risks, uncertainties, and factors weighing negatively against the transactions contemplated by the merger agreement. THE AMERICAN WATER BOARD UNANIMOUSLY RECOMMENDS THAT AMERICAN WATER SHAREHOLDERS VOTE “FOR” THE SHARE ISSUANCE PROPOSAL AND “FOR” THE AMERICAN WATER ADJOURNMENT PROPOSAL. Essential Board’s Recommendations and Its Reasons for the Merger The Essential board, at a meeting held on