Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 51

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 51
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 the merger qualify as a “reorganization” or that Essential or American Water receive an opinion from counsel to that effect.

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Assuming the merger so qualifies, no gain or loss will be recognized by, or be includable in the income of, a U.S. holder (as defined in “ The Merger—U.S. Federal Income Tax Considerations”) as a result of the receipt of American Water common stock pursuant to the merger, except for any gain or loss recognized with respect to cash received in lieu of a fractional share of American Water common stock. American Water and Essential have not sought and will not seek any ruling from the IRS regarding any matters relating to the merger 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 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 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 discussion of the U.S. federal income tax consequences of the merger. Comparison of Rights of American Water Shareholders and Essential Shareholders Following completion of the merger, the rights of Essential shareholders who become shareholders of American Water in the merger will be governed by Delaware law and American Water’s certificate of incorporation and American Water’s bylaws. Therefore, Essential shareholders will have different rights once they become shareholders of American Water due to differences between Delaware law and Pennsylvania law and differences between the organizational documents of American Water and the organizational documents of Essential, as described in more detail in “ Comparison of Rights of American Water’s Shareholders and Essential’s Shareholders.” Comparative Per Share Market Prices and Dividend Information Comparative Per Share Market Prices The following table sets forth the closing price per share of American Water common stock and of Essential common stock as of October 24, 2025, the last trading day prior to the announcement of the execution of the merger agreement, and