Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 64

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 64
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 alter the relative value of American Water or
Essential or the prices of shares of American Water common stock or Essential common stock by the time the merger is completed. The opinions do not speak as of the date the merger will be completed or as of any date other than the date of each
respective opinion. For a description of the opinion that the American Water board received from American Water’s financial advisor, see “The Merger—Opinions of American Water’s Financial Advisor” beginning on
page 80. For a description of the opinion that the Essential board received from Essential’s financial advisor, see “The Merger—Opinion of Essential’s Financial Advisor” beginning on page 90.

Holders of American Water common stock and holders of Essential common stock will not have appraisal rights or dissenters’ rights in the merger.

Appraisal rights (also known as dissenters’ rights) are statutory rights that, if applicable under law, enable shareholders to dissent from
an extraordinary transaction, such as a merger, and to demand that the corporation pay the fair value for their shares as determined by a court in a judicial proceeding instead of receiving the consideration offered to shareholders in connection
with the extraordinary transaction.

Under Delaware law, American Water shareholders will not be entitled to any appraisal 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 rights in connection with the merger or any other transactions described in
this joint proxy statement/prospectus.

Completion of the merger may trigger change in control or other provisions in certain agreements to which American Water or Essential or their respective subsidiaries are a party, which may have an adverse impact on the combined company’s business and results of operations.

The completion of the merger may trigger change in control or other provisions in certain agreements to which American Water or Essential or their respective
subsidiaries are a party. If American Water and Essential are unable to negotiate waivers of those provisions or otherwise amend the terms of such agreements, the counterparties may exercise their rights and remedies under the agreements,
potentially terminating the agreements or seeking monetary damages. Even if American Water and Essential are able to negotiate waivers or amend the terms of such agreements, the counterparties may require a fee for such waivers or amendments or
renegotiate the agreements on terms less favorable to American Water, Essential, or the combined company. Any of the foregoing or similar developments may have an adverse impact on the combined company’s business, results of operations