Ecorodovias wins São Paulo beltway auction

Brazilian infrastructure company Ecorodovias won the concession for the last stretch of the Rodoanel Mário Covas beltway in São Paulo state.

The company's bid was 833mn reais (US$257mn), 90% higher than the 421mn minimum price.

The offer was also well above the bid of 518mn reais made by Italy's Atlantia.

Investors apparently considered the price paid as being too high. Ecorodovias' shares closed down 3.95% on the São Paulo stock exchange on Wednesday.

"The asset's acquisition is consistent with the strategy of EcoRodovias Group of focusing on toll road concession assets and lengthening the duration of its portfolio," the company said in a statement.

A total of 1.2bn reais will be invested by the concessionaire to maintain the 47.6km stretch, according to the state government. The 30-year concession also contemplates investments in works of 582mn reais for the north section of the stretch.

The auctioned stretch was the last of the 180km Rodoanel and it will connect the Santos port and Guarulhos airport. The port and the airport are both the largest in the country.

The west section of the Rodoanel is under the concession of CCR Rodoanel and the stretches of the south and east operated by the SPMar concessionaire.