Green energy campaign drives PH M&A deals in 2025

Isla Lipana & Co./PwC Philippines’ Year-End M&A Report 2025 showed that 74 M&A deals were announced in the country as of 4 December 2025, with a total deal value of US$4.6 billion. Strategic selection anchored investor interest, driving targeted activity toward stronger opportunities. The energy and natural resources sector accounted for 29.7 percent of the total deal volume, followed by consumer and retail at 14.9 percent, and industrials at 12.2 percent.

“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,” PwC Philippines M&A and Corporate Finance Partner Trissy Rogacion said.

Clean energy push

The energy and natural resources sector had a total deal value of US$1.9 billion from 22 deals. Among the largest transactions were Prime Infrastructure Capital’s US$897.5-million acquisition of First Gen assets. Meralco also invested US$127.6 million in SP New Energy Corporation, showing demand for flexible, renewable-linked projects. Another notable deal was SembCorp's US$77.4-million purchase of the Puente Al Sol solar farm in Negros Occidental.

Policy support is poised to sustain investor interest, with the Philippine Energy Plan revising the government’s target for renewable share of power generation to 35% by 2030, as well as duty-free importation of renewable energy equipment.

Other industries to watch

Real estate and infrastructure had a total deal value of US$1.2 billion, with asset quality, location, and tenant mix driving M&A transactions. Legislative reforms such as the Real Property Valuation and Assessment Reform Act and the Accelerated and Reformed Right-of-Way (ARROW) Act also shaped the investment climate in infrastructure deals.

Meanwhile, the industrial sector had nine announced deals with a total deal value of US$180 million. Deal activity centered on commercial and institutional construction, as well as metal smelting and refining.

Outlook for 2026 and beyond

The energy sector is expected to drive more M&A activity in the Philippines in 2026. Both foreign and domestic strategic and financial investors are looking to increase their investments in renewable energy.

The healthcare sector is also expected to have continued deal flow this year, as existing players focus on increasing their hospital presence across the nation. The push for better healthcare is also supported by investors.

“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.”