Equatorial Secures 30% Stake in Minas Gerais’ Copasa, Prompting Privatization Controversy

Equatorial’s subsidiary, Gerias Saneamento, was chosen as the reference investor in the secondary public offering of Copasa, the water and sanitation company of Minas Gerais. The deal gives Equatorial a minimum 30% share of Copasa, with the group also seeking an additional 12.6% allocation pending the book‑building outcome. The acquisition is part of Equatorial’s broader expansion in Brazil’s sanitation sector.

The transaction has triggered political and public backlash. Critics point to Equatorial’s earlier control of São Paulo’s Sabesp, where service complaints rose sharply after privatization. In Minas Gerais, opposition parties have filed a request with the Supreme Federal Court to overturn the deal and demand a popular referendum. A recent state‑wide plebiscite showed over 95% of respondents opposed the Copasa privatization, while labor unions and consumer groups call for the state audit court to invalidate the process amid allegations of irregularities and corruption.