Mergers and acquisitions (M&A) in the Philippines are set for a rebound in 2026, with energy and grid-adjacent assets leading the charge, according to a report by Isla Lipana & Co. (PwC Philippines) released Friday.
The surge comes after a slower 2025, when investors were more cautious and strategically selective in closing deals.
A slower year, but solid foundations
Last year, the Philippines recorded 74 M&A deals totaling $4.6 billion, down from 113 deals worth $8.6 billion in 2024. Despite the decline, the report highlights that many deals are simply taking longer to close, and a wave of these transactions is expected to finalize in the first half of 2026.
Trissy Rogacion, PwC Philippines’ M&A and Corporate Finance partner, said in a statement,
“Philippine M&A trends last year indicated our resilience points and opportunity strongholds. 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.”
In Southeast Asia, the Philippines ranks fifth in M&A activity, behind Singapore, Malaysia, Vietnam, and Indonesia, showing room to grow despite the slowdown.
Energy leads the pack
Energy and natural resources dominated the market with $1.91 billion worth of deals, followed by real estate ($1.155 billion), consumer and retail ($659.3 million), and communications, media, and entertainment ($300 million). Other sectors included transportation, industrials, technology, financial services, and healthcare.
Some of the largest deals of 2025 included:
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Prime Infrastructure Capital Inc. acquiring $897.5 million worth of power stations from First Gen
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Meralco’s $127.6-million investment in SP New Energy Corp.
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AREIT Inc.’s $343.9-million property infusion
Roderick Danao, PwC Philippines chairman and senior partner, noted,
“Even as investors were selective last year, we anticipate sustained interest across various sectors. For energy, renewables drove the market. Investors are clearly aligning with the government’s long-term clean energy campaign.”
Other sectors to watch
PwC also highlighted industrial, real estate, and infrastructure sectors as areas poised for growth, thanks to recent legislative reforms such as the Real Property Valuation and Assessment Reform Act and the Accelerated and Reformed Right-of-Way (ARROW) Act.
With a renewed focus on clean energy and strategic investments, experts say 2026 could mark a new wave of M&A activity in the Philippines, offering opportunities for investors, businesses, and the economy as a whole.
“We expect a dynamic year ahead,” Danao added.
“Energy deals will lead, but other industries will follow closely. The Philippines is ready for growth.”
