PwC’s mid-year report on merger and acquisitions (M&A) shows that there were 42 M&A deals in the Philippines from January to June 2023, with total transactions amounted to USD3.4 billion mainly focusing on public utility projects.

According to the PwC report, M&A transactions in the country aimed at improving public utilities, with M&A deals in this sector valued at USD1.3 billion, or nearly half of the total deals in the first half of the year.

“During the first half of the year, deals in the country focused on modernization efforts in industries such as telecommunications and construction, driven by increased government efforts to attract foreign investments and develop infrastructure,” the report said.

Top sectors for M&A in the first six months of the year were telecommunications, food and beverages, construction and renewables.

It added that the majority of the M&A deals in the country in the first half of 2023 was led by domestic investors, with significant inbound investments from Singapore and Japan.

“Supported by government initiatives, deals in the country will continue to be driven by public and private companies,” the PwC report said. “Deals that focus on construction, specifically in infrastructure, reflect how government initiatives for development affected the M&A landscape as a whole.”

It further said the decision of the Philippine Competition Commission (PCC) to increase the threshold for mandatory notification of M&A transactions to PHP6.5 billion for Size of Party and to PHP2.5 billion for Size of Transaction encourages foreign investment activity in M&A deals in the country.

“Companies prioritizing strategic partnerships and expansion plans will have a competitive edge in this dynamic market,” the report added. (PNA)