East Zone concessionaire Manila Water Company, Inc. (MWC) is expanding its foothold in Mexico by gaining control of a utility that serves over 1.5 million people, including residents of Puebla, the country’s fourth-largest city. 

The Razon-led firm, through its subsidiary Manila Water Asia Pacific Pte. Ltd., will acquire 74.85 percent of Concesiones Integrales, S.A. de C.V. (Agua de Puebla) for MXN 3.625 billion, or around P11.6 billion. 

In a filing to the local bourse, MWC confirmed it signed a binding term sheet for the deal on Friday.

“Our ability to optimize (our) existing operations through balanced concession management, disciplined cost approach, and portfolio rationalization has shown solid performance in the last few years,”  MWC COO for International Business and Chief Administrative Officer Roberto Locsin said. 

“Likewise, we hope to be able to bring in unique value and capabilities on the current platform that the existing shareholders have established in Agua de Puebla to further accelerate the development and growth of the company,” he added. 

The transaction, however, remains subject to execution of a share purchase agreement and fulfillment of related conditions precedent.

Agua de Puebla handles drinking water supply, treatment, distribution, drainage, sewage, wastewater treatment, and related customer services. 

In 2024, it delivered 245 million liters of water daily across multiple municipalities. The surrounding state of Puebla, home to over 6.5 million residents, hosts a strong industrial base, including global companies such as Volkswagen, Audi, Nestle, and Mondelez International.

The 30-year concession granted by Sistema Operador de los Servicios de Agua Potable y Alcantarillado del Municipio de Puebla covers water and sanitation services in key municipalities, with the option to extend up to 60 years.

In a separate report on Friday, MWC said it booked a 25 percent jump in net income to P12.667 billion for the first nine months of 2025, up from P10.103 billion a year earlier.

The growth came as revenues rose 9 percent to P30.053 billion, while cost of sales and operating expenses declined 1 percent to P8.693 billion.

The company ended September with total assets of P13.734 billion, up 6 percent, and total liabilities down 3 percent to P155.730 billion.