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Brazil energy firm Equatorial Energia agreed to acquire a 15% stake in São Paulo’s water utility, Companhia de Saneamento Básico do Estado de São Paulo (Sabesp), on 25 June for R$6.9 billion (US$1.2 billion). In a process marred by a lack of competition due to strict bid requirements and contractual risk, Equatorial submitted the only firm offer for a stake in the country’s largest water and sewer services provider. It values the company at 44% below market value.
In this Research Note:
- Equatorial builds multi-utility position
- Blockage remains for foreign players to enter Brazil concession market
- Three-tier competitive landscape cemented
