Brazil’s Sabesp to Fully Absorb EMAE, Vote Set for July 30

Utilities M&A · Brazil

São Paulo’s water utility Sabesp is moving to fold power company EMAE fully into its structure. Shareholders vote on July 30 on a merger that would delist EMAE and make it a wholly owned subsidiary.

The merger on the table

Sabesp and Empresa Metropolitana de Águas e Energia, known as EMAE, executed a merger protocol in June 2026 under which Sabesp will absorb every EMAE share it does not already hold. Extraordinary general meetings of both companies are scheduled for July 30, 2026 to vote on the plan.

If approved, EMAE would become a wholly owned subsidiary of Sabesp and its stock would be removed from B3’s Traditional listing segment. Sabesp has estimated the transaction costs at roughly R$4.45 million (about US$0.8 million).

How Sabesp got here

Sabesp acquired control of EMAE in January 2026, purchasing about 74.9% of its voting capital for roughly R$682 million (about US$126 million). It followed with a mandatory tender offer for remaining common shares priced at R$49.46 (about US$9.20) each.

In March 2026 Sabesp bought the Oceania investment fund, which held a strategic EMAE stake, for R$171.6 million (about US$32 million). Those steps lifted Sabesp’s direct and indirect holdings and set the stage for a full merger.

Why it matters

EMAE operates hydroelectric and water-management assets in the São Paulo metropolitan region, including infrastructure tied to the Billings and Guarapiranga reservoir systems. Combining those assets with Sabesp’s water and sanitation network is intended to streamline management of shared river basins.

Sabesp, privatized in 2024, has pursued a leaner corporate structure and integrated operations as it seeks efficiency gains. The company says unifying the shareholder bases will simplify governance and administration across the two businesses.

Frequently Asked Questions

What are shareholders voting on?

At extraordinary meetings on July 30, 2026, Sabesp and EMAE shareholders vote on a merger under which Sabesp absorbs all EMAE shares it does not own, delisting EMAE from B3.

How much did Sabesp pay for control of EMAE?

Sabesp bought about 74.9% of EMAE’s voting capital in January 2026 for roughly R$682 million, or about US$126 million.

What does EMAE do?

EMAE runs hydroelectric and water-management assets in the São Paulo metropolitan area, including infrastructure linked to the Billings and Guarapiranga reservoirs.

Sources

• TipRanks — Sabesp/EMAE control
• TipRanks — June 2026 merger plan
• The Globe and Mail — tender offer

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