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By Katrina Mennen A. Valdez, Reporter
Half of privately held businesses in the
Philippines will grow through acquisitions in the next three years
despite the economic slowdown in the US, according to a study
contained in International Business Report produced by Grant
Thornton International.
According to the IBR, 25 percent of Filipino
business leaders said they expect growth to occur through domestic
acquisitions.
The study was released by accounting, tax and
business advisory firm Punongbayan & Araullo (P&A), a member
firm of Grant Thornton.
Of the privately held businesses that intend to
grow through acquisition, 63 percent expect this growth to be
through cross-border acquisition, said the report.
Francis Albalate, P&A’s Transaction
Advisory Services head, said this indicates that Philippine
businesses are now ready to compete in the global acquisitions of
businesses and expand their operations offshore.
One of the companies undertaking acquisition
projects is the beauty and personal care product manufacturer Splash
Corp. Another is Zesto Corp. whose owner, Ambassador Alfredo Yao,
has announced the firm’s acquisition of Asian Spirit and South
East Asian Airlines.
In the banking industry, several institutions
are heeding the call of the Bangko Sentral ng Pilipinas to consider
mergers in order to establish more financially stable banks.
Albalate said they expect to see more bank
mergers in two to three years as the Basel II standards are fully
implemented in 2010.
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