The mergers and acquisitions (M&A) landscape of the Philippines recorded a total deal of more than $8 billion in 2024, the PwC Philippines said in its official report released on Friday.

Based on the Yearend M&A Report 2024 of the consulting firm, the country’s M&A landscape achieved a total deal value of $8.6 billion across 113 transactions.

“The energy and natural resources sector led in deal-making activity with 21 transactions. Other leading sectors included technology, financial services, real estate, and consumer and retail,” the report further stated.

The energy and natural resources were 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.

Other leading sectors included technology, financial services, real estate and consumer and retail.

On the other hand, the Build, Better, More Infrastructure Program (BBM), launched as the successor to the Build, Build, Build initiative, 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’ US$740 million acquisition of CEMEX Holdings Philippines, which aligns with efforts to enhance construction capacity and advance infrastructure development goals,” the report for the Philippine M&A landscape further stated.

Furthermore, the financial services sector has expanded, 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. Additionally, the growing demand for e-commerce, retail banking, and investment solutions highlights the sector’s role in enabling inclusive economic growth,” the M&A report noted.

Global M&A cautious

In terms of worldwide deal volume, the M&A landscape last year was marked by a cautious yet hopeful recovery, with global deal value rising by about 8.3 percent versus the previous year.

“Private equity activity also gained momentum, bolstered by ample available capital and favorable interest rates,” PwC said in its report.

In the Asia Pacific, the consulting firm said that while overall deal value fell by 6.9 percent compared to 2023, the Asia Pacific region accounted for 27 percent of the global deal count.

“Several countries experienced notable growth. China took the lead with a deal value amounting to $278.1 billion, while Japan, India and Australia also made significant strides,” it said.

Moreover, PwC said in 2024, the Asia Pacific region had over 11,000 deals, with a total disclosed value of $889.4 billion, with several key sectors showing strong growth potential.

“The consumer and retail sector achieved a total deal value of $127.3 billion, including the world’s largest transaction: the acquisition of Seven & i Holdings Co., Ltd. by Alimentation Couche-Tard Inc. for $58.4 billion,” according to the report.