Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 68

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 68
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 and when expected. The integration could also be more expensive than anticipated. It is also possible that the 41

combined company will not successfully compete for some or all of the reasons discussed in the risks described in American Water’s and Essential’s respective Annual Reports on Form 10-K for the fiscal year ended December 31, 2024, each as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form
8-K. Failure to achieve these anticipated benefits could result in increased costs or decreases in the amount of expected revenues and otherwise adversely affect the combined company’s future business,
financial condition, operating results, and prospects.

American Water shareholders and Essential shareholders will have a reduced ownership and voting interest after the merger and will exercise less influence over the policies of the combined company than they now have on the policies of American Water and Essential, respectively.

Based on the number of shares of American Water common stock and Essential common stock outstanding as of [ ], 202[ ], the last practicable trading
day before the date of this joint proxy statement/prospectus, it is estimated that current American Water shareholders and Essential shareholders will own approximately [ ]% and [ ]% of the combined company’s outstanding shares of
common stock, respectively, on a fully diluted basis immediately following the consummation of the merger.

American Water’s and Essential’s
shareholders currently have the right to vote for their respective directors and on other matters affecting their company. If the merger occurs, each Essential shareholder who receives shares of American Water common stock will become a shareholder
of American Water with a percentage ownership of the combined company that will be smaller than such shareholder’s percentage ownership of Essential. Correspondingly, upon the completion of the merger, each holder of American Water common
stock will remain a shareholder of American Water but with a percentage ownership of the combined company that will be smaller than such shareholder’s percentage of ownership immediately prior to the merger. As a result of these reduced
ownership percentages, American Water’s shareholders will have less voting power and influence in the combined company than they now have with respect to American Water, and former Essential shareholders will have less voting power and
influence in the combined company than they now have with respect to Essential.

The future results and market value of the combined company may be adversely impacted if the combined company does not effectively manage its expanded operations following the completion of the merger or the combined company fails to successfully execute its business strategy and objectives.

Following the completion of the merger, the size of the combined company’s business will be