Spain's Aena wins largest block in Brazil airport tender

Spain's Aena on Thursday won the rights to operate the largest airport block auctioned by the Brazilian government for 2.45 billion reais ($471.61 million), expanding its portfolio in Latin America's largest economy.

Aena was the only company to bid for the block of 11 airports, including Congonhas domestic airport in Sao Paulo, one of the country's busiest. The Spanish company, which already operates six airports in northeastern Brazil, made an offer representing a 231% premium over the minimum required. Aena is expected to invest around 5.8 billion reais in the block. A consortium including brokerage firm XP (NASDAQ:XP) Inc and French infrastructure company Egis made the only bid for the block, which includes the small airports of Jacarepagua in Rio de Janeiro and Campo de Marte in Sao Paulo. The bid was made for R$141.4 million, the minimum amount required for the block, and the firms plan to invest R$560 million in the airports. A group of Brazilian companies, Socicam and Dix, won the tender with Vinci Airports for the operating licenses for the airports in the state capitals of Para and Macapa for R$125 million. The bid was 120% above the minimum price set by the Brazilian government. Brazil will receive a total of R$2.72 billion for the concessions of the 15 auctioned airports. Lawyer Ricardo Fenelon, partner at Fenelon Advogados and former director of aviation regulator ANAC, said the result "renews the belief that there is great interest in Brazilian airports." "Not only the high premium on the two blocks, but also the interest of two companies that already operate airports in Brazil and are consolidating their market share shows that the model is a winner," Fenelon added.