By Brazil Stock Guide – The state of Minas Gerais plans to auction water utility Copasa (CSMG3:SA) in the first quarter of 2026, ahead of Brazil’s election calendar, Vice-Governor Mateus Simões said in an interview with Valor Econômico. The state government is expected to submit a privatization bill to the Minas Gerais state assembly within 30 days.
“The Copasa project is moving at a good pace in the legislature. We already cleared the Constitution and Justice Committee, and we expect the special committee to be installed next week. Within 30 days, we should have the bill up for a vote,” Simões said.
The plan aims to accelerate universal access to sanitation across more than 600 municipalities served by the utility while raising funds for infrastructure. Unlike São Paulo’s privatization of Sabesp (SBSP3:SA), Minas Gerais intends to maximize revenue through different sale formats. “We are looking for the best way for the government of Minas to raise the largest possible amount of resources for the people of the state. It could be a single tranche with sale of control, two tranches with a strategic partner and a follow-on, or only through a follow-on,” Simões said.
The government will retain a golden share, granting veto power over key strategic decisions such as investment structures, maintaining the company’s headquarters in Minas Gerais and preserving its name. “This doesn’t mean holding a significant stake, but it is a way to protect strategic assets,” Simões noted.
He stressed that Minas Gerais is better positioned than São Paulo. “Sabesp needed an investment plan provided by the buyer. We already have an approved plan and financing contracts to ensure universalization. What we need now is speed and agility,” he said. Simões also confirmed that Copasa will not face restrictions to expand into other states after privatization.
Investor interest has increased ahead of the process. Perfin and Goldman Sachs (GS) have recently acquired significant positions in Copasa, betting on the stock’s upside potential. Asked about the possibility of privatizing state power utility Cemig (CMIG4:SA), Simões said: “The priority, at this moment, is Copasa.”