Company: BLUWU
Filing Date: 2025-02-20
Form Type: S-1
Source: 0001493152-25-007630
Chunk: 267

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-02-20
Form: S-1
Chunk 267
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These concessions shall be for a period of 20 years from the 13 thday of January 2025.”

| 177 |

United States Federal Income Tax Considerations

The following discussion summarizes certain United States federal income tax considerations generally applicable to the acquisition, ownership and disposition of our units (each consisting of one Class A ordinary share and one-half of one redeemable warrant) that are purchased in this offering, which we refer to collectively as our securities, by U.S. Holders (as defined below) and Non-U.S. Holders (as defined below).

Because the components of a unit are generally separable at the option of the holder, the holder of a unit generally should be treated, for United States federal income tax purposes, as the owner of the underlying Class A ordinary share or warrant components of the unit. As a result, the discussion below with respect to holders of Class A ordinary shares and warrants should also apply to holders of units (as the deemed owners of the underlying Class A ordinary shares and warrants that constitute the units).

This discussion is limited to certain United States federal income tax considerations to beneficial owners of our securities who are initial purchasers of a unit pursuant to this offering and hold the unit and each component of the unit as a capital asset under the Code. This discussion assumes that the Class A ordinary shares and one-half of one redeemable warrant will trade separately and that any distributions made (or deemed made) by us on our Class A ordinary shares and any consideration received (or deemed received) by a holder in consideration for the sale or other disposition of our securities will be in U.S. dollars. This discussion is a summary only and does not consider all aspects of United States federal income taxation that may be relevant to the acquisition, ownership and disposition of a unit by a prospective investor in light of its particular circumstances, including:

| ● | our founders, the sponsor, officers or directors;                                                                                                                                                                |
| ● | banks, financial institutions or financial services entities;                                                                                                                                                    |
| ● | broker-dealers;                                                                                                                                                                                                  |
| ● | taxpayers that are subject to the mark-to-market tax accounting rules;                                                                                                                                           |
| ● | S Corporations;                                                                                                                                                                                                  |
| ● | tax-exempt entities;                                                                                                                                                                                             |
| ● | individual retirement accounts or other tax deferred accounts;                                                                                                                                                   |
| ● | governments or agencies or instrumentalities thereof;                                                                                                                                                            |
| ● | insurance companies;                                                                                                                                                                                             |
| ● | regulated investment companies;                                                                                                                                                                                  |
| ● | real estate investment trusts;