By Brazil Stock Guide – Sabesp (B3: SBSP3; NYSE: SBS) agreed to acquire a 90% stake in Saneamento de Mirassol – Sanessol, deepening its expansion strategy after privatization. The transaction with Iguá Saneamento remains subject to customary conditions, including approval by Brazil’s antitrust authority.
Sanessol holds the water and sewage concession in Mirassol, a mid-sized municipality in northwestern São Paulo state, about 450 kilometers (280 miles) from the capital, serving roughly 65,000 residents. The asset adds scale to Sabesp, which provides water and sanitation services to 375 municipalities, operating one of the largest regulated sanitation networks in Latin America.
Sabesp will keep its shareholders and the market informed of any material developments regarding the Transaction.
Consolidation After Privatization
The acquisition reflects Sabesp’s strategy to pursue bolt-on deals in familiar regulatory environments. Interior concessions offer immediate cash flow, operating assets already in place, and lower execution risk than greenfield projects. They also allow faster integration while expanding service coverage.
The move comes after Sabesp’s privatization by the São Paulo state government under Governor Tarcísio de Freitas. Control of the company was transferred to Equatorial Energia, reshaping governance and accelerating a more market-driven growth agenda.
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