Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 107

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 107
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| • |     | Essential’s financial performance may not meet American Water’s expectations; |

| • |     | the risk that American Water’s management’s time and attention and American Water’s other                                                                                                                          
 resources may be diverted from the operation of American Water’s businesses, including other strategic opportunities and operational matters, while American Water is working toward the completion of the merger; |

| • |     | the possibility that completion of the merger, which is subject to certain conditions, as more fully described in                                                                                                         
 “The Merger Agreement—Conditions to the Completion of the Merger” beginning on page 140, may not occur or may be delayed for reasons that are beyond the control of American Water or Essential, and the impact that such 
 failure or delay would have on American Water;                                                                                                                                                                            |

| • |     | one or more applicable governmental entities may not grant the required regulatory approvals or may seek to                                                                                                                                            
 impose unfavorable terms or conditions on the required regulatory approvals, thereby requiring American Water to agree to substantial concessions or remedies to meet its obligations under the merger agreement if such terms or conditions would not 
 have a burdensome effect;                                                                                                                                                                                                                              |

| • |     | obtaining the required regulatory approvals may take a significant period of time, and the pendency of the merger                                                                                                                                        
 during the regulatory approval process may preclude American Water from pursuing other strategic opportunities or may result in unfavorable outcomes for American Water in rate cases in the states where American Water has made, or intends to make, a 
 filing with an applicable PSC or other regulator;                                                                                                                                                                                                        |

| • |     | the possibility that American Water may be required to pay Essential a termination fee of $835 million under                                                                                                                           
 certain circumstances following termination of the merger agreement, including if the merger agreement is terminated due to the American Water board changing its recommendation that American Water shareholders vote “FOR” the share 
 issuance proposal, as more fully described in “The Merger Agreement—Effect of Termination” beginning on page 143;                                                                                                                      |

| • |     | the merger agreement does not preclude a third party from making an unsolicited competing proposal to Essential                                                                                                                                          
 and that, although the merger agreement prohibits Essential from soliciting a transaction from a third party to acquire all or a significant part of 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