January 4, 2025 | 12:00am
MANILA, Philippines — Merger and acquisitions (M&A) transactions in the Philippines jumped by 37 percent to $8.6 billion in 2024 from $6.2 billion in 2023, according to a report by PwC Philippines.
PwC Philippines said 2024 was a promising period for M&A in the Philippines, fueled by progressive investment policies and strong performances in key industries.
In a report, PwC Philippines said the Philippines registered 113 M&A deals in 2024.
“The energy and natural resources sector led in deal making activity with 21 transactions, driven by renewable energy investments such as Terra Solar Philippines’ solar power expansion and Meralco PowerGen’s renewable energy infrastructure projects, underscoring the push for green energy,” PwC Philippines said.
The report said the sector registered $3.7 billion worth of deals in 2024, adding that this was largely driven by investments in solar and wind projects.
“A notable transaction was Aboitiz Power Corp.’s $2.2 billion acquisition of multiple power stations, aligning with its strategy to expand generation capacity and meet increasing energy demand while also focusing on sustainable energy and enhancing power supply reliability,” it said.
In addition, renewable energy initiatives bolstered the sector’s growth, particularly through the Department of Energy’s Green Energy Auction Program, which streamlined bidding for clean energy capacities.
“The Philippine Energy Plan further enhanced M&A attractiveness through its focus on energy security and infrastructure modernization,” PwC Philippines said.
Following the energy and natural resources sector, which accounted for an 18.6-percent share of total M&A deal volumes, was the financial services sector with a 15-percent share of the deals valued at $908.2 million.
“The financial services sector is expanding, driven by digital transformation and financial inclusion efforts. Digital payment systems, fintech integration and consumer banking innovations are transforming the industry, with the Digital Payments Transformation Roadmap of the Bangko Sentral ng Pilipinas driving faster adoption,” PwC Philippines said.
It added that the growing demand for e-commerce, retail banking and investment solutions highlights the sector’s role in enabling inclusive economic growth.
Meanwhile, the report highlighted the importance of the Build, Better, More infrastructure program, which was launched as the successor to the Build, Build, Build initiative, emphasizing that it has been pivotal in accelerating infrastructure projects nationwide.
The program, which includes 198 flagship projects estimated at P8.8 trillion, focuses on prioritizing investments in transport systems, urban development and resilient infrastructure.
“By supporting a pipeline of large-scale projects, the program continues to attract both foreign and local investors. A notable transaction is DMCI Holdings’ $740-million acquisition of CEMEX Holdings Philippines, which aligns with efforts to enhance construction capacity and advance infrastructure development goals,” PwC Philippines said.
The report cited the infrastructure program as one of the factors that fueled the growth in real estate deals, which totaled $1.1 billion across eight transactions.
Other top sectors in 2024 were technology with a 14.2-percent share of deal volume, consumer and retail (12.4 percent) and business services (11.5 percent).
“The technology sector saw significant M&A activity, driven by digital transformation in cloud computing and IT services,” PwC Philippines said.
It added that the country continues to show potential in integrating artificial intelligence (AI) across various industries, with organizations expressing interest in these technologies despite existing digital skills gaps.
“Looking ahead, new infrastructure projects, advancements in telecommunications and a shift toward environmentally friendly energy sources are set to drive the country’s growth,” PwC Philippines said.
“These developments, coupled with investor-friendly policies like the CREATE MORE Act and regulatory reforms that encourage foreign participation in sectors such as energy and telecommunications, position the Philippines as a hotspot for thriving M&A activity,” it added.
It emphasized that this environment offers exciting opportunities for strategic partnerships and success, particularly in sectors like renewable energy, real estate, technology and financial services.
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