Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 174

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 174
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 (iv), (A) that have become final orders (as defined below) and (B) without the imposition of terms or conditions that, individually or in the aggregate, constitute a burdensome effect (as defined below), and (v) the absence of any law or judgment that prevents, makes illegal, or prohibits the completion of the merger. However, American Water and Essential cannot predict the actual date on which the merger will be completed because completion is subject to conditions beyond their control and it is possible that such conditions could result in the merger being completed earlier or later or not being completed at all. See “ Regulatory Matters Relating to the Merger”beginning on page 118 and “ The Merger Agreement—Conditions to the Completion of the Merger” beginning on page 140. U.S. Federal Income Tax Considerations The following is a summary of U.S. federal income tax considerations generally applicable to U.S. holders (as defined below) that exchange shares of Essential common stock pursuant to the merger. This discussion is based on the Code, the U.S. Treasury Regulations promulgated thereunder, and interpretations of such authorities by the courts and the IRS all as in effect as of the date hereof, and all of which are subject to differing interpretation or change, possibly with retroactive effect. Any such change could affect the accuracy of the statements and conclusions set forth in this discussion. This discussion assumes that the merger will be completed in accordance with the merger agreement and as further described in this joint proxy statement/prospectus. Neither American Water nor Essential intend to request any ruling from the IRS as to the U.S. federal income tax consequences of the merger. No assurance can be given that the IRS will not challenge the conclusions herein or that a court would not sustain such a challenge. This discussion is limited to U.S. holders that hold their Essential common stock as a “capital asset” within the meaning of the Code (generally, property held for investment). Further, this discussion does not purport to consider all aspects of U.S. federal income taxation that may be relevant to U.S. holders in light of their particular circumstances, nor does it apply to U.S. holders subject to special treatment under the U.S. federal income tax laws, such as:

| • |     | tax-exempt entities (including private foundations); |

| • |     | partnerships, S corporations, or other pass-through entities (or an investor in a partnership, S corporation or 
 other pass-through entity);                                                                                     |

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