Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 59

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 59
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 • |     | having to pay certain significant costs relating to the merger without receiving the benefits of the merger,                                                                                               
 including, in certain circumstances, the payment of a termination fee by American Water of $835 million to Essential, and the payment by Essential of a termination fee of $370 million to American Water; |

| • |     | diversion of each company’s management’s attention from day-to-day operations; |

| • |     | not pursuing other strategic transactions that either or both companies may have otherwise considered had the 
 merger agreement not been executed;                                                                           |

| • |     | each party will have been subject to certain restrictions on the conduct of its ongoing businesses, which may                                                
 prevent either or both parties from making certain acquisitions or dispositions or pursuing certain business opportunities while the merger was pending; and |

| • |     | the price of either or both companies’ common stock may decline to reflect assumptions by the market as to 
 whether the merger will be completed.                                                                      |

Even if the merger agreement proposal is approved by Essential shareholders, the date that Essential shareholders will receive the merger consideration, if at all, is still uncertain. As described in this joint proxy statement/prospectus, completing the merger is subject to numerous conditions, not all of which are controllable or waivable by American Water or Essential. Accordingly, if the merger agreement proposal is approved by Essential shareholders, the date that Essential shareholders will receive the merger consideration, if at all, depends on the completion date of the merger, which is uncertain. The merger may cause suppliers, strategic partners, certain customers, or others to delay or defer decisions regarding one or both companies’ business, and may adversely affect either or both companies’ ability to effectively manage its business. The merger will happen only if stated conditions are satisfied, including the receipt of the requisite shareholder approvals and the receipt of certain regulatory approvals, among other conditions. Many of the conditions are outside the parties’ control, and both parties also have certain rights to terminate the merger agreement. Accordingly, there may be uncertainty regarding the completion of the merger. This uncertainty, or any disagreement with the decision to enter into the merger agreement, may cause one or both companies’ suppliers, vendors, strategic partners, certain customers, or others that deal with either company to delay or defer entering into contracts or make other decisions concerning American Water or Essential, or to seek to change or cancel existing business relationships. Any delay or deferral of those decisions or changes in existing agreements or relationships could have a material adverse effect on American Water or Essential