Ayala Corp., the oldest conglomerate in the Philippines, is trying to get its separate businesses to build value jointly rather than on their own, according to president and chief executive Cezar “Bong” Consing. The group’s holdings include BPI, Ayala Land, Globe and the fintech company Mynt, and Consing says the aim is a structure that behaves more like a platform.
Consing, who took the top job in 2022, told the Philippine Daily Inquirer that the group has not reached that point yet. He explained that conglomerates once mattered mainly because they gave businesses access to capital, a role that became obvious during the Asian financial crisis of the late 1990s. Private equity and other funding sources have since given individual companies more choice. Regional conglomerates also tend to trade below the value of their parts, and Ayala looks to Japan’s Mitsubishi Corp. and its ecosystem model as an example of a group that commands a premium instead.
That relationship has become more concrete. Ties with Mitsubishi date back to 1974 and were revived through an investment in Mynt, after Mitsubishi chief executive Katsuya Nakanishi visited the Philippines and invited Ayala to work together. The deal is worth about P45 billion depending on exchange rates, with roughly P20 billion going to Ayala. Consing plans to use that money to cut debt and buy shares in operating companies he regards as undervalued, with Ayala Land first in line. He floated using up to half of the P20 billion to buy Ayala Land stock in the market.
Consing sees customer data as a possible link between the businesses, calling it “a unique asset class” that could support bundled products, though any connection must respect regulation and privacy rules. Retail, through the Anko format, is meant to support Ayala’s malls rather than compete with the country’s dominant retailers. He rejects the idea that the group has become ruthless, arguing that higher borrowing costs force sharper choices. Chief social infrastructure officer Paolo Borromeo said exits from Purefoods and Manila Water were difficult for a group used to holding assets for decades. Looking ahead, Consing named healthcare, education and electric vehicle mobility as areas for new investment, and expects smaller businesses to grow faster, citing Mynt’s rise beyond its Globe roots. He also said Ayala should not assume it will always be the natural owner of any business. The test of the strategy will be whether the group’s units can offer customers more together than they do apart.
