Philippine M&A Trends in 2025

Resilient optimism defined the M&A landscape in 2025, as shifting headwinds in elevated long-term interest rates, US tariffs, and protectionism prompted more selective dealmaking. Corporate leaders engaged in M&A to capture growth amid uncertainty, resulting in a substantial 27.9% increase to US$4,737.3 billion in aggregate deal value from 2024. Key deals included Union Pacific Corporation's US$88.2-billion stock-and-cash deal to acquire Norfolk Southern Corporation and the hostile bidding war between Paramount and Netflix for the takeover of Warner Bros. Discovery. The financial services and technology sectors continue to perform well, driven by deep credit markets, effective use of deal leveraging, and sustained innovation in Artificial Intelligence (AI) solutions. Seizing the initiative, disciplined acquirers are transforming volatility into strategic advantage for the next cycle. 

The total deal value in North America increased from US$1,832.5 billion in 2024 to US$2,471.1 billion in 2025, with technology, industrials, and energy and natural resources as the top sectors. Meanwhile, Europe's total deal value grew from US$817.2 billion in 2024 to US$970.1 billion in 2025, partly driven by major deals in the United Kingdom and the reduction of benchmark lending rates by European central banks.

Growth in the Asia-Pacific (APAC) region was driven by the digital transformation of many family-run businesses and increased cross-border appetite for expansion. Consequently, APAC contributed 21% of the total global deal value in 2025, underscoring its attractiveness to investors worldwide.

APAC M&A activity in 2025 was led by the industrials, technology, and energy and natural resources sectors. Ongoing tensions between the US and China continue to fuel cross‑border compliance burdens and price pressures on APAC goods, prompting supplier acquisition in consumer goods and industrials sectors. Moreover, regulatory engagement in this region is becoming more dynamic. Australia's foreign investment review board recently blocked drugmaker Cosette's nearly US$500 million buyout bid for the Australian Mayne Pharma brand, citing national security and competition concerns. Evidently, APAC's strong deal flow and economic growth remain a key engine of global M&A in 2025 and beyond.

_{Sources: Mergermarket, S&P Capital IQ, JP Morgan & Chase, Bloomberg, Reuters}

Philippine M&A activity in 2025 sealed an overall deal value of US$4.6 billion across 74 transactions. 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. The energy and natural resources sector accounted for 29.7% of the total deal volume, followed by consumer and retail services at 14.9%, and industrials at 12.2%. Energy and natural resources led the Philippine sectors with 22 transactions worth US$1.9 billion in total. M&A activity is still centered on renewable energy assets. A key deal is SembCorp's US$77.4-million purchase of the Puente Al Sol solar farm in Negros Occidental, which aligns with the Department of Energy's prioritization of renewable energy infrastructure. Other leading sectors included real estate, industrials, and financial services. 

In real estate and infrastructure, deal activity was supported by sustained demand for logistics, industrial, and commercial assets. Meanwhile, infrastructure deals benefited from regulatory reforms such as the Accelerated and Reformed Right‑of‑Way (ARROW) Act, which streamlined right‑of‑way acquisition for large‑scale projects. Real estate transactions remained driven by portfolio optimization, asset recycling, and consolidation among developers.