Minas Gerais Lawmakers Approve Copasa Privatization Bill in Final Vote

Overview

• ALMG passed PL 4.380/25 by 53–19 after hours of opposition obstructions and protests by Copasa workers, sending the text to Governor Romeu Zema for sanction.
• The measure permits the state to give up control while retaining a golden share and converting Copasa into a corporation with limits on any shareholder’s voting power.
• Post-transaction rules mandate universalization and water-quality targets and grant 18 months of stability to permanent staff, with sale proceeds eligible for debt amortization or a sanitation fund whose creation no longer has a 180‑day deadline.
• The government has not chosen a sale format, with options including an auction or share sale and a capital increase that dilutes the state; BTG Pactual, Stocche Forbes and EY are advising.
• Zema has indicated a target to conclude the deal in the first quarter of 2026 or by April–May, and reported revenue estimates vary from about R$4 billion to R$10 billion or more, while Copasa shares have risen roughly 112% in 2025.