The Philippines began the third quarter with growth momentum as the economy expanded about 5.5% year-on-year in Q2, its fastest pace in a year. This was supported by resilient consumption and a rebound in agriculture. Inflation eased below 1% in July, creating room for monetary easing, and policy rates were cut three times since April to around 5%. Even so, foreign investment approvals softened and manufacturing sentiment stayed cautious, keeping the backdrop balanced rather than buoyant.

M&A activity was moderate. Year-to-date, 46 announced deals totaled roughly US$5.4bn. In Q3, 10 transactions were disclosed with an aggregate value near US$0.4bn—down about 52% by volume and 80% by value versus the same quarter last year—indicating a quieter tape despite a steadier macro setting.

Deal value was concentrated in industrials & chemicals (I&C), amounting to US$155m, followed by real estate (US$107m) and leisure (US$103m). Smaller prints came from energy, mining & utilities (EMU) with US$7m and technology, media & telecoms (TMT) with US$6m. By activity, leisure led with four announcements, while EMU posted two and one apiece in I&C, pharma, medical & biotech (PMB), real estate, and TMT.

Domestic acquirers ran the table in Q3: Philippines bidders executed eight of the ten disclosed transactions and accounted for US$372m in value, with the USA contributing US$6m. The tilt toward home‑market buyers highlights diligence, familiarity, and decision speed in today’s selective environment.

The deal mix is keeping to familiar trends. Consumer-linked resilience and gradual sectoral normalization showed up alongside selective moves in energy and infrastructure adjacencies. The largest announced deal in the Philippines during Q3 was in the I&C sector, valued at approximately US$155m, setting the tone for the quarter’s aggregate value. The second most significant transaction occurred in real estate, amounting to around US$107m and reflecting sustained interest in property development. Leisure emerged as a key theme, with three notable deals collectively totaling about US$103m; these transactions highlight ongoing sectoral normalization and expansion in consumer-facing industries. The sixth largest deal was in EMU, valued at roughly US$7m, indicating selective investment in renewable energy and infrastructure adjacencies. Rounding out the top seven, the TMT sector saw a deal worth approximately US$6m, underscoring continued interest in digital content and tech-enabled growth.

Looking ahead, policymakers still target a 2025 growth range of about 5.5%–6.5%, contingent on export stabilization and continued fiscal support. For dealmakers, that implies a measured pipeline: selective processes, a focus on assets with clean diligence paths, and an emphasis on sectors where demand visibility and financing conditions align.

For a comprehensive look across APAC markets, including Greater China, Japan, South Korea, Southeast Asia, India, and Australia & New Zealand, download the full Deal Drivers: APAC Q3 2025 report.