Brazilian sanitation company Foz Centro Norte, formed of Foz do Brasil and construction firm Emsa, will acquire 76.5% of Tocantins state water utility Saneatins.
The share will first be transferred to Emsa before being passed on to Foz Centro Norte. Foz do Brasil is contributing 200mn reais (US$108mn) for the transaction, the company said in a release.
Over the next 90 days, Foz do Brasil will negotiate with Emsa to buy out its remaining share in Saneatins, the release said.
Following the deal, Saneatins will invest some 700mn reais, including financing and its own funds, Foz do Brasil president Fernando Reis told paper Valor.
Saneatins currently has annual revenue of around 200mn reais, which could increase to 450mn reais by 2017, the company said.
Foz do Brasil, producing revenue of about 915mn reais/y, is controlled by Brazilian engineering firm Odebrecht. The company now serves 125 municipalities in Tocantins and five in Pará state, covering 1mn people.