THE Philippines recorded $8.6 billion (P500.27 billion) worth of mergers and acquisition (M&A) deals in 2024, PricewaterhouseCoopers (PwC) said, up 38.71 percent compared to the $6.2 billion posted a year earlier.
The 113 transactions seen last year also improved by 29.9 percent from 87 in 2023, PwC said in its Key M&A Trends in 2024 report that was released last month.
Energy and natural resources deals accounted for $3.7 billion across 21 transactions, or 18.6 percent of the M&A activity, with a particular push in renewable energy investments.
The real estate and technology sectors saw deals totaling $1.1 billion each across eight and 16 transactions, respectively, while financial services hit a deal value of $908.2 million for 17 transactions. Industrials ($895.6 million, eight transactions), and consumer and retail ($392.7 million, 14 transactions) followed.
“The year 2024 was a promising period for M&A in the Philippines, fueled by progressive investment policies and strong performances in key industries,” PwC said in the report.
Meralco PowerGen and Aboitiz Power Corp.’s $2.2-billion acquisition of multiple power plants, announced in March, and Actis LLP’s $600-billon bid in September for Terra Solar Philippines were said to have driven activity in the energy sector.
Another transaction cited by PWC was April’s $740-million acquisition of Cemex Holdings Philippines by DMCI Holdings Inc., which was said to be aligned with the latter’s efforts to enhance construction capacity and advance infrastructure development.
Other notable deals in 2024 were AREIT Inc.’s $510.7-million expansion of its property portfolio, and Ayala Corp.’s $394.7-million and Mitsubishi UFJ Financial Group Inc.’s $393-million investment, announced in August, in Globe Fintech Innovations Inc.
The government’s Build Better More program was said to have accelerated infrastructure projects nationwide while digital transformation and financial efforts were cited as factors in the expansion of the financial services sector.
Reforms such as the Create and Create More laws, meanwhile, are expected to lure investors via improved incentives and streamlined processes, while the National Fiber Backbone project was said to be attracting interest in industries that require robust digital networks.
“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 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.
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