Brazil's CADE Accepts Challenge to Equatorial's Copasa Privatization

Brazil’s antitrust authority, CADE, has admitted an appeal filed by the water workers’ union Sindágua against the approval of Equatorial’s purchase of a 30% stake in the state water utility Copasa. The union argues that the original decision, made under a simplified summary procedure, should be reconsidered because Equatorial already holds a significant position in the sector through its shareholding in Sabesp, a role it assumed in July 2024. CADE’s rapporteur, José Levi, accepted the challenge and gave Equatorial and Copasa five business days to respond. If the appeal is not pursued, the earlier approval will become final.

The case highlights concerns that the summary review may have overlooked competitive risks arising from Equatorial’s broader presence in Brazil’s water‑sanitation market, prompting a request for a more rigorous ordinary review.