Privatization processes present a multifaceted challenge, especially in countries with fragile market institutions. This article delves into the complex dynamics of privatization, emphasizing the importance of balancing different interests with a particular focus on the role of competition law. While asset maximization has traditionally dominated privatization discussions, this study advocates for a broader perspective that uses privatization to enhance market institutions. As a base study and drawing on the Brazilian experience of the steel sector privatization, the article unravels the consequences of partial privatizations and the risk of common ownership and interconnected influence through the State. Ultimately, the article contributes to a comprehensive understanding of privatization’s role in competitive markets and economic progress.