EPR Wins Régis Bittencourt Highway Auction with 22.5% Discount

SÃO PAULO — Infrastructure consortium Grupo EPR won the federal auction for the BR-116/SP/PR highway, widely known as the Régis Bittencourt, during a competitive bidding session held at the B3 exchange. EPR secured the 15-year concession by offering a steep 22.53% discount on the basic toll tariff. The aggressive bid successfully outpaced rival offers from Motiva, which proposed a 12.10% discount, and the current operator Arteris, which submitted a nominal 0.01% discount.

The strategic corridor connects the metropolitan area of São Paulo to Curitiba, linking Brazil's industrial Southeast to southern agricultural hubs and the key ports of Santos and Paranaguá. Under the terms of the newly optimized contract, the concessionaire is required to execute an estimated R$11.2 billion ($2.15 billion) in total expenditures. This includes R$7.07 billion in direct capital expenditure (Capex) for infrastructure expansions—such as adding 69 kilometers of additional lanes—and R$4.1 billion in operational costs (Opex) over the next 15 years.

The transaction marks a significant development for global investors tracking B3 stocks and those looking to invest in Brazil. The auction was structured under a consensual contract optimization framework designed by the federal government and the Federal Court of Accounts (TCU) to resolve stressed concessions. By securing this premium asset, EPR expands its growing portfolio of highway concessions across Paraná and Minas Gerais, leveraging regional synergies to absorb the capital-intensive requirements of the corridor.

The major corporate development occurred amid a broader pullback in Brazilian equities. The benchmark Ibovespa today fell 0.85% to close at 175,214.62 points, reflecting cautious local market sentiment. Major blue-chip components of the Brazil ETF (EWZ) also registered losses, with state-run oil giant Petrobras (PETR4) sliding 0.28% to R$42.83, mining giant Vale (VALE3) dropping 0.83% to R$75.05, and financial heavyweight Itaú Unibanco (ITUB4) declining 0.99% to R$42.14.