The administration of Argentine President Javier Milei is actively pursuing a comprehensive agenda of privatization and economic deregulation, fundamentally altering the nation's business environment and introducing new dynamics for international companies. This transformative period, spanning from June 2024 through October 2025, is marked by significant shifts in state-owned enterprises and a broad move towards economic liberalization.
The government's strategy includes the privatization of key state-owned companies and the corporatization of public entities. In October 2024, U.S. firm ARC Energy finalized its acquisition of IMPSA, a prominent energy sector company, with a commitment to maintaining its operations and workforce. This marked a significant milestone as the first privatization under the Milei administration. Further illustrating this trend, Banco de la Nación Argentina underwent a transformation into a corporation in February 2025. While the state retained a substantial 99.9% stake, this restructuring aims to modernize its operations and enhance its market competitiveness.
Looking ahead, July 2025 marked the commencement of the privatization process for Aguas y Saneamientos Argentinos S.A. (AySA), the utility responsible for water and sanitation services to approximately 3.8 million households in Buenos Aires and its surrounding areas. The plan is to transfer 90% of AySA's shares to private investors through a public tender, a move that follows substantial state funding, totaling $13.4 billion for AySA since its renationalization in 2006.
Complementing these privatizations is the broad deregulation effort, spearheaded by the "Bases y Puntos de Partida para la Libertad de los Argentinos" law, which received Senate approval in June 2024. This legislation aims to liberalize the economy and labor market, granting the president enhanced authority in certain areas for a year. The law's passage is a cornerstone of Milei's economic vision, designed to reduce the state's footprint and foster private investment.
These sweeping reforms have naturally introduced a degree of uncertainty for international businesses operating within Argentina. Companies are compelled to navigate a rapidly evolving market, carefully assessing the implications of these changes on their existing investments and long-term strategic planning. While privatization and deregulation can unlock new avenues for international investors, they also present challenges, including adaptation to new regulatory frameworks, managing inherent political and economic risks, and competing within a more open marketplace.
An additional layer to this economic restructuring is the government's focus on the energy sector. Argentina has initiated a bidding process for several hydroelectric plants in the Patagonian provinces of Neuquén and Río Negro, including Alicurá, El Chocón, Cerros Colorados, and Piedra del Águila. This divestment, valued at approximately $500 million, represents a significant portion of the country's energy generation capacity. As Argentina charts this new economic course, the impact of these reforms on international business operations and the broader economic landscape will continue to unfold, presenting both opportunities for growth and the necessity for strategic adaptation.