Equatorial Energia takes control of Minas Gerais water utility Copasa in $8.3 bn privatization

The state-owned water and sanitation company Copasa was sold on 16 June 2026, completing a privatization that raised more than R$ 8 billion. Grupo Equatorial (Equatorial Energia) acquired 30 % of the firm for roughly R$ 5.5 billion, becoming the primary shareholder, while the Minas Gerais government kept a 5 % golden share that grants veto power over strategic decisions. The transaction transferred ownership of a utility that serves 636 municipalities and employs thousands of workers.

The sale has sparked concerns among Copasa staff and unions about possible job cuts and changes to collective agreements, with fears of mass layoffs and voluntary severance programs. Analysts note that Equatorial already controls São Paulo’s Sabesp, where consumer complaints have risen sharply, intensifying worries that similar service issues could affect Minas Gerais. Proceeds from the deal are earmarked for debt repayment to the Union and investment in the state’s basic sanitation fund.