A03 Bagui, Karylle Lyca C. B17 Centeno, Mark Daniel B.

A06 Barrios, Benjamin Q. B18 Cuenco, Jean Lucille V.

BSBA FM 1-1 C36 Perez, Caren M.

The History of Ayala Corporation

Ayala Corporation (Spanish: Corporación Ayala, formerly Ayala y Compañía) is

the publicly listed holding company for the diversified interests of the Ayala Group.Ayala’s
entrepreneurial spirit and drive to find new areas of growth allowed the group to endure and evolve,
and become one of the Philippines’ largest and most diversified conglomerates.

It was founded during the Spanish colonial rule in 1834. Founding partners Domingo
Roxas and Antonio de Ayala establish Casa Roxas, an agribusiness that invested most of its assets
in a distillery—the same one that produced Ginebra San Miguel (later acquired by La Tondeña,
Inc. in 1929). They invested the bulk of its assets in a distillery, which is considered the country’s
first industry.

In 1851, When the Spanish royal decree established Southeast Asia’s first private
commercial bank, it was Antonio de Ayala who was the appointed director. There, Ayala became
involved in banking. El Banco Espanol Filipino de Isabel II, precursor of the Bank of the Philippine
Islands, is the first bank in the Philippines.

Ayala participated in the construction of the Puente de Ayala (Ayala Bridge) over the Pasig
River in Manila. Built of wood in 1872, the bridge was reconstructed in steel in 1908 and became
the first steel bridge in the Philippines. Later in 1883, they introduced Tramcars, the country’s first
public mass transportation system, is introduced and operated by Jacobo Zobel y Zangroniz.

Ayala were pioneers in insurance, first by investing in Insular Life in 1910 then by
establishing its own insurance companies.When de Ayala got married, they still continued to do
business. As many decades later, the Ayala engaged at real estate development as parts of the
Hacienda Makati were developed. IN the year of 1948, Joseph McMicking created the Ayala
Master Plan, the blueprint for today’s premier Makati business, commercial and residential district
and the inspiration for many integrated communities that came after it. Now, the commercial and
residential hub continues to be home to 30% of the country’s top 1,000 corporations, while
bringing together various residential areas, cultural centers, and places of leisure.
The firm finally took root in 1968, the year it was officially incorporated. In 1974, Ayala invested
in Globe-Mackay Cable and Radio Corporation, the company’s first foray into
telecommunications. They also partnered with Mitsubishi Corporation of Japan to explore new
growth sectors

Ayala finally became a publicly listed company in 1976 and later ventured into the
electronics manufacturing services industry through Integrated Micro-Electronics Inc. It was th
year 1988 when Ayala Land is spun off to grow the real estate business. With its partners, Ayala
invests in automotive dealership, beginning with Honda passenger vehicles, followed by Isuzu in
1995. Filipinas Foundation, established by Joseph and Mercedes Zobel McMicking in 1961, is
renamed Ayala Foundation, reflecting the Ayala group’s commitment to corporate social
responsibility.

Ayala partners with SingTel in Globe Telecom in 1993 to pursue network modernization
and to provide high-speed internet access. In 1997, the consortium led by Ayala won the water
concession for Metro Manila’s East Zone and forms Manila Water. On 2003, Ayala Land built
Bonifacio Global City, or BGC, and sets its sights on Nuvali in Laguna

In January 2006, the board of directors publicly announced the decision by Jaime Zóbel de
Ayala to retire as chairman of the corporation by April 2006. The board also announced his
appointment as chairman emeritus upon his retirement. His eldest son, Jaime Augusto Zóbel de
Ayala, succeeded him as chairman and chief executive officer, while his younger son, Fernando
Zóbel de Ayala, has assumed the position of president and chief operating officer. The Zóbel de
Ayala family's holding company, Mermac, Inc., continues to hold the controlling stake (49%) in
Ayala Corporation

Branching out, Ayala established AC Energy in 2011 to invest in power generation AC

Infra, in partnership with the national government, begins to develop transport and highway
infrastructure systems. AC Education is formed to provide quality, affordable private education.
AC Health is established in 2015 and begun with an investment in Generika pharmacies and
FamilyDOC primary care clinics.

During 2017 Ayala invested in a digital future at the right time. Aside from its investment
in MedGrocer, perhaps what excited many consumers in the country was Ayala Corporation’s
investment in online fashion retailer Zalora back in the year 2017—a 49 percent stake, to be
precise.
 Ayala Corporation continues to be at the forefront of sustainability. They have a laundry
list of achievements that serve the people and the planet, but one recent development is the Ayala
Sustainability Blueprint, which ultimately addresses the UN Sustainable Development Goals. CEO
Jaime Augusto Zobel de Ayala shared in the UN Global Compact Network Philippines and GRI
Sustainability Summit, “It has become clear to us that businesses cannot operate in a vacuum,
linked only to communities through the investments they make, and the products and services they
generate.”

REFERENCES:

Ayala Corporation. (2019). En.wikipedia.org. Retrieved 23 September 2019, from

https://en.wikipedia.org/wiki/Ayala_Corporation#History

(2019). https://www.ayala.com.ph. Retrieved 23 September 2019, from

https://www.ayala.com.ph/history

The Milestones That Made Ayala Corporation One of the Largest Conglomerates in the Country.
(2019). Townandcountry.ph. Retrieved 23 September 2019, from
https://www.townandcountry.ph/people/money-power/ayala-corp-history-a00300-
20190922-lfrm2