Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 30

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 30
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 approximately [ ]% of the then outstanding American Water common stock, and former Essential shareholders will own approximately [ ]% of the then outstanding American Water common stock, in each case based on the number of shares of 
 common stock and stock-based awards of American Water and Essential outstanding as of [ ], 202[ ], the last practicable trading day before the date of this joint proxy statement/prospectus.                                            |

| Q: | What happens if the merger is not completed? |

| A: | If the share issuance proposal is not approved by American Water shareholders, if the merger agreement proposal                                                                                                                                           
 is not approved by Essential shareholders, or if the merger is not completed for any other reason, Essential shareholders will not have their shares of Essential common stock converted into the right to receive shares of American Water common stock. 
 Instead, each of American Water and Essential would remain separate companies. Under certain circumstances, American Water may be required to pay Essential a termination fee or Essential may be required to pay American Water a termination fee, as    
 described under “The Merger Agreement—Effect of Termination.”                                                                                                                                                                                             |

16

| Q: | Are there any risks associated with the merger that I should consider in deciding how to vote? |

| A: | Yes. A number of risks related to the merger are discussed in this joint proxy statement/prospectus and 
 described in “Risk Factors” beginning on page 35.                                                       |

| Q: | What are the U.S. federal income tax consequences of the merger to U.S. holders of Essential common stock? |

| A: | American Water and Essential intend for the merger to qualify as a “reorganization” within the                                                                                                                                       
 meaning of Section 368(a) of the Code for U.S. federal income tax purposes, and American Water and Essential intend to report the merger consistent with such qualification. Nevertheless, it is not a condition to American Water’s 
 obligation or Essential’s obligation to complete the transactions contemplated by the merger agreement that the merger qualify as a “reorganization” or that Essential or American Water receive an opinion from counsel to that     
 effect.                                                                                                                                                                                                                              |

Assuming the merger so qualifies, no gain or loss will be recognized by, or be includable in the income of, a U.S. holder (as defined in “ The Merger—U.S. Federal Income Tax Considerations”) as a result of the receipt of American Water common stock pursuant to the merger, except for any gain or loss recognized with respect