Equatorial SA is now unlikely to bid for a strategic stake in Copasa, the Minas Gerais water utility being privatized, according to people familiar with the matter.
Sabesp’s withdrawal earlier this week upended the planned joint offer, prompting Equatorial to spend several days reassessing whether to stay in the process alone.
Monday is the next key date: Equatorial is set to hold a meeting to make a final decision on whether to participate.
An Equatorial exit would further weaken competition for one of Brazil’s closely watched state-utility privatizations.
With its lead bidder gone, can Brazil's R$10 billion water privatization deal be saved?
Is the troubled legacy of Sabesp's privatization now poisoning Brazil's future water deals?