Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 176

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 176
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i) a court within the United States is able to exercise primary supervision over its                                                                                                                                        
 administration and one or more United States persons (within the meaning of Section 7701(a)(30) of the Code) have the authority to control all substantial decisions of the trust or (ii) the trust has a valid election in effect to be 
 treated as a United States person for U.S. federal income tax purposes.                                                                                                                                                                  |

If an entity or an arrangement treated as a partnership for U.S. federal income tax purposes holds shares of Essential common stock, the tax treatment of a partner in such partnership will generally depend upon the status of the partner, the activities of the partnership, and certain determinations made at the partner level. Accordingly, entities or arrangements treated as a partnership for U.S. federal income tax purposes that hold shares of Essential common stock, and any partners in such partnerships, should consult their tax advisors regarding the tax consequences of 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. 115

Treatment of the Merger The following discussion regarding the U.S. federal income tax consequences of the merger assumes that the merger will be consummated as described in the merger agreement and this joint proxy statement/prospectus. American Water and Essential intend for (and have agreed to use their respective commercially reasonable efforts to cause) the merger to qualify as a “reorganization” within the meaning of Section 368(a) of the Code. The obligation of American Water and Essential to consummate the merger is not conditioned upon the receipt of an opinion from counsel that the merger would so qualify. As discussed above, neither American Water nor Essential intends to request any ruling from the IRS as to the U.S. federal income tax consequences of the merger, and there is no guarantee that the IRS or a court will treat the merger as a “reorganization” within the meaning of Section 368(a) of the Code. Provided that the merger qualifies as a “reorganization” under Section 368(a) of the Code, the U.S. federal income tax consequences to U.S. holders will generally be as follows:

| • |     | no gain or loss will be recognized by, or be includable in the income of, a U.S. holder as a result of