Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 64

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 64
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 plans. The combined company’s success after the completion of the merger will depend in part upon the ability of American Water and Essential to attract, motivate, and retain key management personnel and other key employees.
Prior to completion of the merger, current and prospective employees of American Water and Essential may experience uncertainty about their roles within the combined company following the completion of the merger, which may have an adverse effect on
the ability of each of American Water and Essential to attract, motivate, or retain management personnel and other key employees. In addition, no assurance can be given that the combined company will be able to attract, motivate, or retain
management personnel and other key employees of American Water and Essential to the same extent that American Water and Essential have previously been able to attract or retain their own employees.

The parties may be the target of securities class action and derivative lawsuits that could result in substantial costs and may delay or prevent the merger from being completed.

Securities class action lawsuits and derivative lawsuits are often brought against companies that have entered into a
merger agreement. Even if these lawsuits are without merit, defending against these claims can result in substantial costs to the parties to the merger agreement and divert management time and resources. Additionally, if a plaintiff is successful in
obtaining an injunction prohibiting the completion of a merger, that injunction may delay or prevent such merger from being completed.

American Water and Essential may incur substantial and/or unexpected transaction fees and merger-related costs in connection with the merger.

American
Water and Essential expect to incur substantial non-recurring expenses associated with completing the merger, as well as expenses related to combining the operations of the two companies. The combined company
may incur additional unanticipated costs in the integration of the companies’ businesses. Although the parties expect that the elimination of certain duplicative costs, as well as the realization of other efficiencies related to the
integration of the two businesses, will offset some or all of the incremental transaction and merger-related costs over time, the combined company may not achieve this net benefit in the near term, or at all.

None of the opinions regarding the fairness, from a financial point of view, of the exchange ratio in the merger delivered to the American Water board and the Essential board prior to the signing of the merger agreement reflects any changes in circumstances since the date on which such opinions were delivered.

Each of the opinions rendered by BofA Securities, financial advisor to American Water, to the American Water board on, and dated, October 24, 2025, and by
Moelis,