Mergers and acquisitions (M&A) in the Philippines totaled 74 deals worth $4.6 billion in 2025 as investors flocked to the energy and natural resources sector, according to a report by Isla Lipana & Co./PwC Philippines.
The energy and natural resources sector led the market with 22 transactions valued at $1.9 billion, accounting for 29.7 percent of total deal volume. Consumer and retail followed at 14.9 percent, while industrials made up 12.2 percent of the activity.
Investor activity remained strategically selective throughout the year, focusing on transactions with stronger fundamentals.
PwC Philippines M&A and corporate finance partner Trissy Rogacion said deals are taking longer to close due to more deliberate and strategic decision-making, with several transactions expected to be completed early this year.
Significant energy transactions included the $897.5 million acquisition of First Gen assets by Prime Infrastructure Capital and a $127.6 million investment in SP New Energy Corp. by Meralco.
SembCorp purchased the Puente Al Sol solar farm in Negros Occidental for $77.4 million.
Market interest is expected to be sustained by policy support, specifically the Philippine Energy Plan’s target to increase the renewable share of power generation to 35 percent by 2030.
Incentives such as duty-free importation of renewable energy equipment also continue to attract capital.
The real estate and infrastructure sectors posted a combined deal value of $1.2 billion.
PwC Philippines chairman and senior partner Roderick Danao said renewable energy clearly drove activity last year in alignment with the government’s clean energy program, positioning the market for continued flow in the energy sector.
Investment sentiment was also influenced by legislative reforms, including the Real Property Valuation and Assessment Reform Act and the Accelerated and Reformed Right-of-Way Act.
In the industrial sector, nine announced deals worth $180 million were recorded, primarily in metal smelting, refining and commercial construction.
PwC expects the energy sector to continue to lead activity in 2026, as both foreign and domestic investors increase exposure to renewable projects. Healthcare is also expected to maintain deal flow as operators expand hospital networks across the country.
