More M&A deals expected this year

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January 10, 2026 | 12:00am

MANILA, Philippines — Merger and acquisition (M&A) transactions in the Philippines are expected to increase this year after deal activity saw a slowdown in 2025 with investors being strategically selective, according to a report by PwC Philippines.

In its M&A Report 2025, PwC Philippines said the country recorded 74 M&A transactions as of Dec. 4, 2025 with a total deal value of $4.6 billion, lower than the 113 deals registered in 2024 worth $8.6 billion.

The report said that investors continued to align with the government push for renewable energy, with the energy and natural resources sector accounting for 29.7 percent of the total deal volume, followed by consumer and retail at 14.9 percent and industrials at 12.2 percent.

A total deal value of $1.9 billion from 22 deals was recorded in the energy and natural resources sector.

Among the largest transactions cited were Prime Infrastructure Capital’s $897.5-million acquisition of First Gen assets, as well as Meralco’s $127.6-million investment in SP New Energy Corp. that showed demand for renewable-linked projects. 

Real estate and infrastructure, meanwhile, posted a total deal value of $1.2 billion, driven by asset quality, location and tenant mix. 

PwC Philippines said that legislative reforms such as the Real Property Valuation and Assessment Reform Act and the Accelerated and Reformed Right-of-Way Act helped shape the investment climate in infrastructure deals.

The industrial sector, for its part, had nine announced deals with a total deal value of $180 million, with deal

activity centering on commercial and institutional construction, as well as metal smelting and refining.

Compared to other countries in Southeast Asia, M&A deals in the Philippines ranked fifth in terms of value behind Singapore ($31.7 billion from 336 deals), Malaysia ($7.3 billion from 147 deals), Vietnam ($6.9 billion from 94 deals) and Indonesia ($6.2 billion from 102 deals).

“Philippine M&A trends last year indicated our resilience points and opportunity strongholds,” PwC Philippines M&A and corporate finance partner Trissy Rogacion said. 

“While there was a lower deal volume, we are seeing that more deals are just taking longer to close. We expect a good number of these transactions to be completed early this year,” she said.

PwC Philippines said that 2025 ended with investors indicating a potential increase in M&A activity this year, as buyers focus on acquiring quality assets and pursuing long-term growth opportunities. 

It said that 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.

Expected to drive more M&A activity in the Philippines in 2026 is the energy sector, with both foreign and domestic strategic and financial investors looking to raise their investments in renewable energy.

The health care sector is likewise seen having continued deal flow this year, with existing players focus on increasing their hospital presence across the country. 

“Even as investors have been strategically selective in 2025, we anticipate sustained interest in various sectors,” PwC Philippines chairman and senior partner Roderick Danao said. 

“For energy, deals on renewables drove the sector last year. Clearly, investors are aligning with the government’s long-range campaign for clean energy. With this, we can hope to see a new wave of M&A activity this year, especially in the energy sector,” he said.