Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 114

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 114
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 on page 143;                                                                                                                                                                                                  |

| • |     | the merger is conditioned on the approval by American Water’s shareholders of the share issuance proposal 
 and the risk that American Water shareholders may not approve the share issuance proposal;                |

| • |     | the merger agreement does not preclude a third party from making an unsolicited competing proposal to American                                                                                                                                           
 Water and that, although the merger agreement prohibits American Water from soliciting a transaction from a third party to acquire all or a significant part of American Water, American Water may provide information to, and enter into discussions or 
 negotiations with, a third party regarding such an acquisition, in certain circumstances as further described in “The Merger Agreement—No Solicitation by American Water or Essential” beginning on page 133;                                            |

| • |     | the challenges inherent in the combination of two businesses of the size and complexity of Essential and American                                                                                                                                         
 Water, including the risk that integration of the two companies may take more time and be more costly than anticipated, the risk of not being able to realize all of the anticipated cost savings and other synergies and the risk that other anticipated 
 benefits might not be realized, including the merger being accretive to American Water’s earnings per share in the first year following the closing;                                                                                                      |

| • |     | the potential for litigation by shareholders in connection with the merger, which, even where lacking in merit, 
 could nonetheless result in delays, distraction, and expense;                                                   |

74

| • |     | the fact that if the merger is not completed, Essential will be required to pay its own expenses associated with                               
 the merger agreement, and if the merger is completed, the combined company will bear the cost of the expenses of American Water and Essential; |

| • |     | the fact that certain of Essential’s directors and executive officers have interests in the merger that may                                                                                                                    
 be different from, or in addition to, those of Essential shareholders generally, as more fully described under the caption “ —Interests of Directors and Executive Officers in the Merger—Interests of Essential Directors and 
 Executive Officers in the Merger” beginning on page 105; and                                                                                                                                                                   |

| • |     | the risks of the type and nature described under “Risk Factors” beginning on page 35 and                 
 the matters described under “Cautionary Note Regarding Forward-Looking Statements” beginning on page 33. |

The foregoing discussion of certain factors considered by the Essential board is intended to be illustrative, and