ASEAN KEY DESTINATIONS
M&A activity seen in infrastructure, utilities
Top Philippine firms may enter into more mergers and acquisition (M&A) deals this year, keeping pace with the increasing global business activity, according to ING Bank. In a statement, Consuelo Garcia, ING Bank country manager in Manila, said M&A activity will remain "feverish" this year in terms of volume and value of deals, especially in sectors such as infrastructure, power and services.
Further boosting M&A activity in the country is the public-private partnership (PPP) scheme of the government, which is expected to start the bidding for its priority projects in the first quarter.
"The market will continue to attract more investor interest because of having world-class companies that offer great shareholder value," Garcia said.
Global M&A activity is expected to increase 36 percent this year to $3.04 trillion, according to a report released late last year by Thomson Reuters and Freeman Consulting Services.
According to independent market intelligence firm Mergermarket, M&A activity in Southeast Asia grew 35.9 percent to over 300 deals last year, representing $71-billion worth of deals, double the value registered the year before.
The United Nations Conference on Trade and Development said M&A deals grew 37 percent last year with investors putting more emphasis on M&A over greenfield investments.
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