Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 112

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 112
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 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, under certain circumstances, to change, withhold, withdraw, qualify, or     
 modify its recommendation that Essential’s shareholders vote to approve the merger agreement proposal; and |

| • |     | the merger is intended to qualify as a “reorganization” for U.S. federal income tax purposes in which                            
 Essential’s shareholders generally would not recognize gain or loss upon their exchange of Essential common stock in the merger. |

The Essential board also considered potential risks, uncertainties, and other factors weighing negatively against the merger and the other transactions contemplated by the merger agreement. The Essential board concluded that the anticipated benefits of the merger were likely to outweigh these risks substantially. These potential risks include the following (which are presented below in no particular order and are not exhaustive):

| • |     | the possibility that the merger or the other transactions contemplated by the merger agreement may not be                                                                                                                                              
 completed, or that their completion may be delayed for reasons that are beyond the control of Essential or American Water, including the failure of Essential shareholders to approve the merger agreement proposal, the failure of the American Water 
 shareholders to approve the share issuance proposal, or the failure of Essential or American Water to satisfy other requirements that are conditions to closing the merger, and the impact that such failure or delay would have on Essential;         |

| • |     | the risk that federal and/or state regulatory entities may not approve the merger or may impose terms and                                                                                                                                                
 conditions on its approval, which terms and conditions may adversely affect the business and financial results of the combined company and its ability to realize the expected benefits of the transaction or which terms and conditions may result in a 
 condition to the closing of the merger set forth in the merger agreement failing to be satisfied;                                                                                                                                                        |

| • |     | the risk that the pendency of the merger or failure to complete the merger could adversely affect the operations                                                                                    
 of Essential and its subsidiaries and the relationships of Essential and its subsidiaries with their respective employees (including making it more difficult to attract and retain key personnel), |

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| customers, suppliers, vendors, regulators and others with whom they have business dealings, including as a result of the expected time period for satisfying the conditions to the closing of the 
 merger and the risk of potential delays in satisfying such conditions beyond the anticipated time frames;