Manila Water sets stage for entry into Mexico via Agua de Puebla deal

Manila Water has signed a binding term sheet to acquire 74.85 percent of Mexico’s Concesiones Integrales, S.A. de C.V. (Agua de Puebla), marking one of its most significant international expansion moves to date.

The deal positions Manila Water to enter Mexico’s fast-growing water services sector and take operational control of one of the country’s largest private concessionaires, which serves more than 1.5 million people—including the City of Puebla, Mexico’s fourth-largest urban center.

Driving the news

The acquisition will be executed through Manila Water Asia Pacific Pte. Ltd., the company’s wholly owned subsidiary, Manila Water said in a press statement.  The stakes will be purchased from:

• Creando Estructuras, S.A. de C.V. – 56.14 percent
• Group Agua de México S.A. de C.V. – 18.71 percent

The transaction is still subject to the completion of a share purchase agreement and fulfillment of conditions precedent, it added.

What Agua de Puebla does

Agua de Puebla operates public services across three major areas:

• Drinking water supply, treatment, and distribution
• Drainage, sewage, and wastewater treatment
• Customer services related to water and sanitation

In 2024, the utility delivered 245 million liters of water per day to its service area, which spans multiple municipalities across the State of Puebla.

Zoom out

The company operates under a 30-year concession granted in 2014 by the state-created authority, SOAPAP. The contract covers potable water, sanitation, sewerage, and wastewater services in nine municipalities.

The concession is automatically renewable yearly, up to a maximum of 60 years, offering long-term stability and value creation potential.

Context

Puebla is a major industrial region, home to international companies—including Volkswagen, Audi, Nestlé, and Mondelez—contributing to strong economic fundamentals and sustained demand for water services. 

The state has 6.5 million residents and a robust manufacturing base in automotive, textiles, and agribusiness.

What they’re saying

“Our ability to optimize Manila Water’s existing operations through balanced concession management, disciplined cost approach, and portfolio rationalization has shown solid performance,” said Roberto Locsin, Manila Water COO for international business and chief administrative officer.

“We hope to bring unique value and capabilities to Agua de Puebla to accelerate its development and growth.”

The big picture

The deal advances Manila Water’s strategy to expand into high-potential markets in Latin America where the company can apply its operational expertise and secure long-term value. —Ed: Corrie S. Narisma