By Brazil Stock Guide – Brazil’s power regulator Aneel on Thursday postponed a decision on the sale of control of Emae (EMAE3) to Sabesp (SBSP3), delaying a transaction valued at R$1.13 billion ($224 million). The case was pulled from the agency’s agenda after director Gentil Nogueira requested more time to review the process, criticizing what he described as an overly rapid internal review. Aneel, he said, should not yield to corporate pressure over the pace of regulatory scrutiny.
Pace under scrutiny
The deal’s rapporteur, director Agnes Costa, had voted in favor of the transaction, arguing that there are no legal obstacles preventing Aneel from issuing its prior consent, according to Poder360. The technical opinion focuses on whether Sabesp meets the economic and operational requirements to assume the electricity generation concessions currently held by Emae. Brazil’s antitrust watchdog Cade approved the transaction without restrictions on Dec. 15, leaving Aneel’s authorization as the final regulatory hurdle.
Deal structure
Under the agreement, Sabesp will acquire 70.1% of Emae’s total capital. The stake includes 29.9% obtained through the enforcement of debt held by Phoenix Fund, linked to businessman Nelson Tanure, and 40.2% acquired from Axia, the former Eletrobras subsidiary. The transaction was announced in October 2025, just months after the São Paulo state government privatized Emae in April 2024. Phoenix Fund had purchased the utility for R$1.04 billion in what became the first privatization carried out under Governor Tarcísio de Freitas.
Energy and water management
With annual generation of 1,663 gigawatt-hours, enough to supply roughly 825,000 households, Emae operates power plants and strategic water systems in the São Paulo metropolitan region. Beyond electricity generation, the company plays a central role in water-level management of the Pinheiros and Tietê rivers and in pumping water from the Pinheiros Canal into the Billings reservoir, making it a key player in flood-mitigation efforts.
Read more: The Hidden Threads of EMAE
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