THE Philippines saw fewer merger and acquisition (M&A) transactions in 2025 but could see a rebound this year, PricewaterhouseCoopers (PwC) said on Friday.
The country recorded 74 deals worth a total of $4.6 billion as of Dec. 4, the accounting firm said in a statement.
“While the total deal value and volume were lower than 2024, the recent deals announced in the latter part of the year show positive signs of a rebound in the coming year,” it said.
No comparative figure was provided but PwC’s 2024 report noted 113 transactions worth $8.6 billion.
Of the 2025 total, energy and natural resources accounted for 29.7 percent, or $1.9 billion from 22 M&A transactions, followed by consumer and retail services (14.9 percent), and industrials (12.2 percent).
PwC said the growth of the sector was supported by the Philippine Energy Plan, which aims to raise the share of renewable energy in the power generation mix to 35 percent by 2030.
The sector’s largest transaction was Prime Infrastructure Capital’s acquisition of First Gen assets for $897.5 million.
Other transactions that contributed to the growth of the energy and natural resources sector were Manila Electric Co., which invested $127.6 million in SP New Energy Corp., and Singaporean firm SembCorp’s $77.4-million purchase of the Puente Al Sol solar farm in Negros Occidental.
Real estate and infrastructure, meanwhile, accounted for six deals worth $1.2 billion.
Notably, AREIT Inc. acquired eight commercial properties from Ayala Land for $344 million, streamlining its office and mall footprint, while Robinsons Land Corp. bought nine shopping malls from RL Commercial REIT for $228.8 million.
The increased deal activity in the real estate and infrastructure was said to be supported by sustained demand for logistics, industrial and commercial assets.
It was also driven by regulatory reforms such as the Accelerated and Reformed Right‑of‑Way that streamlined right‑of‑way acquisition for large‑scale projects, PwC said.
The industrial sector, for its part, saw nine deals worth $180 million. This was driven by commercial and institutional building construction, metal smelting and refining.
A notable deal for the sector was Metanoia South Pte. Ltd.’s acquisition of 78.2 percent of PASAR for $155 million, securing control over downstream copper processing.
PwC said the industrial sector faced early challenges, including relatively high borrowing costs, extended project timelines and shortages in technical talent.
As for health care, five transactions worth $33.3 million were recorded, driven by a move to expand the use of digital payments.
PwC noted reforms aimed at protecting consumer lending, such as the Securities and Exchange Commission capping monthly interest rates on loans up to P10,000 at 6 percent.
“As retail credit becomes safer through regulation, financial services companies are scaling their portfolios to meet rising household credit demand,” it said.
Salmon’s $28-million capital-raising round in June was said to underscore “growing confidence of both local and foreign investors in consumer lending firms.”
Last year ended with investors pointing to a likely rise in M&A activity this year, PwC said, with buyers looking for quality assets and pursuing long-term growth opportunities.
“Dealmakers showed clear confidence in the market’s underlying growth drivers, a trend evident in the sectors that led M&A activity throughout the year,” it added.
Energy and grid-related assets are expected to account for most of 2026 transactions given more storage colocation, consolidation of renewables platforms and a clearer calendar.
“With these drivers in place, the Philippines is set to attract a new wave of M&A activity that promises measurable growth across energy, real estate, infrastructure and consumer sectors, bolstering a positive outlook for the coming year,” PwC said in the report.
