Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 111

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 111
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 Essential’s office complex located in Bryn Mawr, Pennsylvania for a period of five years immediately following the effective time and the headquarters and principal corporate offices for Essential’s natural gas business in Pittsburgh, 
 Pennsylvania, in accordance with Essential’s settlement with the Pennsylvania Public Utility Commission in connection with the acquisition of the natural gas business, as described in greater detail in “The Merger                      
 Agreement—Headquarters and Operations of American Water” beginning on page 138, and (ii) provide community development and charitable contributions within Essential’s utility services areas for two years                                
 following the effective time consistent with levels historically provided by Essential, and thereafter consistent with American Water’s levels of contributions within its utility service areas, as described in greater detail in        
 “The                                                                                                                                                                                                                                       |

72

| Merger Agreement—Community Development and Charitable Contributions” beginning on page 138, all of which Essential anticipated would be favorably received by the 
 applicable PSCs and therefore increase the likelihood of completing the merger;                                                                                   |

| • |     | the likelihood and anticipated timing of completing the merger in light of the nature and scope of the conditions 
 to closing;                                                                                                       |

| • |     | the merger would be subject to the approval of Essential’s shareholders, and that shareholders would be             
 free to evaluate the merger and vote for or against the merger agreement proposal at the Essential special meeting; |

| • |     | the terms of the merger agreement were informed by the advice and professional experience of Essential’s 
 advisors and were the result of robust negotiations;                                                     |

| • |     | under the merger agreement, Essential will be permitted to continue to pay its regular quarterly cash dividends           
 consistent with past practices and subject to limits referenced in the merger agreement pending completion of the merger; |

| • |     | Essential’s ability, pursuant to the merger agreement, to seek specific performance to prevent breaches of 
 the merger agreement and to enforce specifically the terms of the merger agreement;                        |

| • |     | the fact that the merger agreement provides that, in the event of a failure of the merger to be completed under                      
 certain circumstances, American Water will pay Essential a termination fee of $835 million, without having to establish any damages; |

| • |     | under the merger agreement, Essential will still be able to consider and respond to unsolicited competing                                                               
 proposals, engage in discussions or negotiations regarding such proposals and terminate the merger agreement to accept a superior proposal under certain circumstances; |

| • |     | the Essential board’s ability,