Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 48

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 48
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 of consideration), subject to certain exceptions. |

Any action or failure to act described above is referred to as an adverse recommendation change. Prior to obtaining shareholder approval of the share issuance proposal, the American Water board may, or, prior to obtaining shareholder approval of the merger agreement proposal, the Essential board may, make an adverse recommendation if (i) American Water or Essential, as applicable, receives a superior proposal that does not result from a material breach of such party’s non-solicitationobligations and (ii) such board determines in good faith (after consultation with outside legal counsel and a financial advisor) that the failure to effect an adverse recommendation change would be inconsistent with its fiduciary duties under applicable law. Prior to making any such adverse recommendation change, the American Water board or the Essential board, as applicable, must comply with certain obligations, including negotiating in good faith with the other party regarding any revisions to the merger agreement that the other party proposes to make so that such competing proposal no longer constitutes a superior proposal.

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For a more complete description of the change of recommendation provisions of the merger agreement, see “ The Merger Agreement—Change of Recommendation and Match Rights” beginning on page 134. Termination of the Merger Agreement As more fully described in this joint proxy statement/prospectus and in the merger agreement, the merger agreement may be terminated prior to the effective time of the merger under specific circumstances, including:

| • |     | by American Water’s and Essential’s mutual written agreement; |

| • |     | by American Water or Essential, if a governmental entity has taken any action, whether by order or law, that                                                                                                                                              
 prevents, makes illegal, or prohibits the completion of the merger and such action has become final and nonappealable; provided that a party will not have the right to terminate the merger agreement in accordance with the provision described in this 
 paragraph if such action by such governmental entity was principally caused by or principally resulted from a material breach by such party of its covenants or other agreements under the merger agreement;                                              |

| • |     | by American Water or Essential, if the Essential shareholder approval is not obtained after the Essential 
 shareholder meeting (including any adjournments or postponements) has concluded;                          |

| • |     | by American Water or Essential, if the American Water shareholder approval is not obtained after the American 
 Water shareholder meeting (including any adjournments or postponements) has concluded;                        |

| • |     | by American Water or Essential,