Mitsubishi to invest USD 700 million in Ayala Corp.

SINGAPORE — The Philippine government welcomed Mitsubishi Corp.’s planned USD 700 million investment in Ayala Corp., a deal expected to rank among the largest foreign equity investments in the country in recent years.

The investment matters beyond the boardroom because it is meant to fund smart city development, digital finance, and infrastructure projects that shape how Filipinos live, work, and pay, while officials say it should create high-value jobs and spread growth to the provinces.

President Ferdinand R. Marcos Jr. met with the leadership of Mitsubishi and Ayala on Oct. 11 at the Hilton Singapore Orchard to discuss the investment.

He was joined by Finance Secretary Frederick D. Go and Trade and Industry Secretary Cristina A. Roque.

The President reaffirmed the government’s strong support for such investments, which advance the country’s long-term economic growth.

“Mitsubishi’s capital commitment demonstrates the strength of Philippine-Japanese economic ties and reflects strong foreign investor confidence in the country’s economic fundamentals. The DTI is fully committed to facilitating strategic partnerships that scale industrial capacity, improve infrastructure development, and create high-value employment across the country,” Roque said.

Under the agreement signed on Sept. 21, Mitsubishi will acquire primary and secondary Ayala shares, including through a voluntary tender offer.

Upon completion, its economic stake in Ayala will increase from 4.7% to 15%, with a 20% voting interest.

The transaction is targeted for completion within Mitsubishi’s fiscal year ending in March 2027, subject to regulatory approvals and tender offer requirements.

Of the total investment, USD 315 million will be paid to Ayala for debt reduction, share repurchases, and future growth.

The transaction builds on a partnership dating back to Mitsubishi’s first investment in Ayala in 1974.

Both companies are seeking deeper collaboration in infrastructure, energy transition, real estate, digital technologies, mobility, and logistics.

Ayala is one of the Philippines’ oldest and largest conglomerates, with interests spanning real estate, banking, telecommunications, water, and energy.

The meeting also evaluated progress on three Memoranda of Understanding on intelligent cities, digital finance, and marketing and advertising technology.

The agreements were signed during Marcos’ State Visit to Tokyo in May 2026.

Discussions also covered opportunities along the Luzon Economic Corridor connecting Subic and Clark.

The corridor is an infrastructure and investment initiative launched in 2024 with Japanese and U.S. support to link key economic hubs in Luzon.

Ayala and Mitsubishi developed Laguna Technopark with Kawasaki Steel in 1989 as one of the country’s first industrial parks.

The two companies expressed interest in replicating that success with new industrial capacity in Central Luzon.

The Philippine delegation reaffirmed the government’s commitment to fostering a more business-friendly environment to support Mitsubishi’s expansion in the country.

The government cited ease-of-doing-business reforms, renewable energy initiatives, and streamlined government processes as part of that effort.

“Mitsubishi’s continued investments reflect its confidence in the Philippines and the opportunities our economy offers. We are encouraged by the deepened partnership that Ayala and Mitsubishi are looking at in the Philippines, particularly those aligned with the Luzon Economic Corridor (LEC) initiative, which will help strengthen key industries, attract more investments, and create greater opportunities for Filipinos,” Go said.

On data centers, Marcos emphasized that power and water facilities should be developed alongside them to avoid straining supply for communities.

Data centers typically require large volumes of electricity and water for operations and cooling.

The President cited Mitsubishi’s experience in liquefied natural gas (LNG) and gas-to-power as a potential contribution.

“This strategic alliance between two industry titans shows the significance of high-impact investments in driving our economic transformation. Through robust policy frameworks like the CREATE MORE Act and expedited Green Lanes, the DTI stands ready to provide seamless regulatory facilitation to ensure that these strategic investments swiftly transition into operational success,” Roque added.

The CREATE MORE Act, enacted in 2024, expanded tax incentives for registered businesses, while the Green Lanes are a government channel meant to speed up permits for strategic investments.

Mitsubishi’s delegation included Executive Vice President Shota Kondo, Tetsu Funayama, and Manila Branch General Manager Harutaka Ishikawa.

Ayala was represented by Chairman Jaime Augusto Zobel de Ayala, Vice Chairman Fernando Zobel de Ayala, and Chief Social Infrastructure Officer Paolo Maximo F. Borromeo.

They were joined by Philippine Ambassador to Singapore Medardo G. Macaraig and Commercial Counsellor Carla Grepo.

The Department of Trade and Industry said it will continue to facilitate strategic investments that promote responsible resource development, expand employment opportunities, and enhance countryside economic growth. (DTI)