Mergers, acquisition to rise this year – First Metro

Mergers and acquisition activities in the country are seen surging this year on the back of the economy’s strong growth, said First Metro Investment Corp., the investment banking arm of the Metrobank Group.

This is in line with data given by Arsenio Balisacan who now heads the Philippine Competition Commission. In an interview with The

STAR, Balisacan said there are more than 20 applications for M&As pending with the newly formed commission.

“We now have more than 20 applications,” Balisacan said early this month.

FMIC said now is the ideal time for Philippine companies to expand and look for growth opportunities offshore. It sees M&A activities implemented by conglomerates, the large publicly-listed companies as well as the mid-tier companies aspiring to take it to the next level.

First Metro executive vice president and Investment Banking Group head Justino Juan Ocampo said the positive condition of the economy and the market won’t change any time soon, and this window of opportunity is expected to stay open at least for the next few years.

Furthermore, with ASEAN integration and the Philippine growth story as backdrop, foreign investors are now actively looking for investment opportunities in the country.

“We expect more opportunities because of consolidation in certain areas such as in the consumer sector, insurance and financial services,” Ocampo said.

Last year, he noted many companies proactively sought to expand their businesses via acquisition. Ocampo said the is likely to continue this year.

“As their investment bank, we are here to support them through financial advisory and formulating strategic financing options,” he said.

FMIC, awarded by The Asset of Hong Kong, in its Triple A Country Awards as Best M&A House, has over 50 years of service in the development of the country’s capital markets. Its offer a wide range of services, from debt and equity underwriting to loan syndication, project finance, financial advisory, investment advisory, government securities and corporate debt trading, equity brokering, online trading, asset management, and research.

In 2015, it successfully completed 19 deals, having participated in 88 percent or P399.14 billion of the total P456.04 billion debt and equity transactions last year.