The Philippine energy sector is gearing up to anchor a fresh wave of mergers and acquisitions in 2026, riding on strong deal momentum and sustained investor appetite that carried through 2025, according to Isla Lipana & Co./PwC Philippines.
In its Year-End M&A Report 2025, PwC said 74 M&A deals were announced in the country as of December 4, with a combined value of USD4.6 billion. Energy and natural resources emerged as the standout sector, reflecting heightened interest in power generation, renewables, and transition assets.
The sector logged 22 deals valued at USD1.9 billion, making it the single largest contributor to total deal value last year.
Among the marquee transactions were Prime Infrastructure Capital’s USD897.5-million acquisition of First Gen assets, Manila Electric Co.’s USD127.6-million investment in SP New Energy Corp., and SembCorp’s USD77.4-million purchase of the Puente Al Sol solar farm in Negros Occidental.
Energy was followed by consumer and retail, which accounted for 14.9 percent of total deal value or USD685 million, and industrials at 12.2 percent or USD561 million, underscoring diversified—but energy-led—investor interest.
PwC’s outlook for 2026 points to continued deal flow, particularly in renewable energy, as both foreign and domestic investors seek exposure to clean and transition energy platforms.
PwC Philippines Chairman and Senior Partner Roderick Danao said renewable-focused transactions drove the sector’s performance in 2025, aligning closely with the government’s long-term clean energy agenda.
Investor confidence is being reinforced by policy support, including the Philippine Energy Plan, which targets renewables to account for 35 percentof power generation by 2030, alongside incentives such as duty-free importation of renewable energy equipment.
PwC noted that while overall deal volume dipped slightly in 2025, transactions became more complex and took longer to close. Many deals remain in progress, setting the stage for completions early in 2026.
Beyond energy, healthcare is expected to sustain M&A activity as hospital operators expand nationwide, while real estate and infrastructure posted USD1.2 billion in deal value, buoyed by legislative reforms and infrastructure demand.
