Sao Paulo-based water utility Sabesp is advancing plans to fully absorb power company EMAE, a move that will result in the delisting of the energy firm from Brazil’s B3 stock exchange.
Shareholders are scheduled to vote on the merger proposal on July 30, following the signing of a merger protocol between the two companies in June 2026.
The transaction represents a significant consolidation within Brazil’s state-owned utility sector.
By absorbing EMAE, Sabesp aims to streamline its operational structure and integrate power generation assets under a single corporate umbrella.
The delisting of EMAE marks the end of its independent public trading status, shifting investor exposure to the combined entity.
This development follows a period of increased M&A activity in Latin American utilities, as companies seek to optimize capital structures and operational efficiency.