Business · Companies · 3 hrs ago
Argentina agrees to sell 90% stake in Buenos Aires water operator
Argentina will sell 90% of AySA, the state-owned water and sewage operator serving Buenos Aires.
The buyer is a consortium of local and Brazilian companies, which agreed to pay US$340 million.
The contract is due to be signed next month.
AySA was created in 2006 after former president Néstor Kirchner took the water service from a French-led company and put it under state control.
The sale is a symbolic step in President Javier Milei’s privatisation drive, which aims to reduce the state’s role in the economy.
That drive has had mixed results: lawmakers blocked plans to sell several major companies, and a Mexican-controlled group recently withdrew from a bid for state freight rail lines.
The AySA deal advances the programme, but its wider progress remains uneven.
Argentina has chosen a consortium of local and Brazilian companies to buy the government’s 90% stake in Buenos Aires water and sewage operator AySA for US$340 million.
The government said the contract is due to be signed next month.
The sale is a significant step in President Javier Milei’s push to privatise state assets.
A day before the AySA deal was announced, Grupo Mexico withdrew from a race to take over state-owned freight rail lines.
The government’s earlier plan to include an initial public offering of some AySA shares fell through.
- Who
- Argentina’s government chose a consortium of local and Brazilian companies to buy the stake.
- What
- The government agreed to sell its 90% stake in AySA for US$340 million.
- When
- The government announced the decision on Thursday; the contract is due to be signed next month.
- Where
- Buenos Aires, Argentina.
- Why
- The sale is part of President Javier Milei’s privatisation agenda.
This story does not have two clearly opposing sides.
Former president Néstor Kirchner cancelled the Buenos Aires water licence held by a French-led company and created state-owned AySA.
Argentina settled an international arbitration case over AySA.
Lawmakers refused to allow the government to sell many companies.
Grupo Mexico withdrew from a race to take over state-owned freight rail lines.
The government announced it had chosen a consortium to buy its 90% stake in AySA.
The contract for the sale is due to be signed.
- Stake for sale
- 90%
- Sale price
- US$340 million
- Company
- Agua y Saneamientos Argentinos SA (AySA)
- Buyers
- A consortium of local and Brazilian companies
- Planned contract signing
- Next month