Mitsubishi to Raise Ayala Stake in P44.5-Billion Deal

MANILA, Philippines — Mitsubishi Corp. is investing about P44.5 billion to substantially increase its stake in Ayala Corp., deepening a partnership that has spanned more than five decades. On Monday, the Philippines’ oldest conglomerate said it had signed a definitive agreement with the Japanese giant. It covers a combination of primary and secondary shares, including a portion of shares held by existing shareholders. Ayala Corp., a diversified group with interests in real estate, financial services, telecommunications, water, power, and transport, said the deal would further strengthen its balance sheet and support its growth initiatives. "This transaction with Mitsubishi Corporation is a testament to the strong and enduring partnership we have built over the past 50 years," Ayala Corp. President and CEO Cezar P. Consing said in a statement. "We are excited to further deepen our relationship with one of Japan’s leading conglomerates and are confident that this will bring new opportunities for growth and innovation in the Philippines." For Mitsubishi Corp., the investment represents a strategic move to bolster its presence in one of Southeast Asia’s fastest-growing economies. The company has been a long-standing partner of Ayala, collaborating on various projects over the years. The deal is subject to regulatory approvals and is expected to be completed in the coming months. This investment underscores the continued interest of foreign investors in the Philippine market, particularly in established conglomerates with diversified portfolios. It is also seen as a positive signal for the country's economic outlook and its potential for further development.