“BUSINESS COMBINATION”

Presented by:
Jane Mary E. Pahayahay
BSA-3 Student

Presented to:
Mr. Wilfredo P. Mondido Jr.
Instructor
BACKGROUND

Ayala’s story started in 1834 when entrepreneur Domingo Roxas and young industrial
partner Antonio de Ayala created a distillery, which is an agribusiness company that grew and
became popular as they started exporting products to Europe. They then garnered recognition
that made them a name in the international scene. From rural to urban, they brought with them
their bestselling brand that is Ginebra San Miguel.

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 and that same bank is now known as the Bank of the Philippine Islands (BPI).

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.
With all these developments and business engagements with regards to real estate, Philippines’
first modern Central Business District was known. Since then, more and more businesses were
made that helped the lives of merchants, employees, micro-entrepreneurs, and its officials. To
this day, Ayala is still rich not only with money, but also with social purpose that also helps in
Philippines’ economy.
SUBSIDIARIES
1. Bank of the Philippine Islands (BPI)
- Acquired in 1969, is a universal bank in the Philippines. It is the first bank in both the
Philippines and Southeast Asia. It is the fourth largest bank in terms of assets, the second
largest bank in terms of market capitalization, and one of the most profitable banks in the
Philippines. 
Structure: Conglomerate Combination
Method/Legal Forms: Asset Acquisition
Reason/s: Ayala Corporation reflects the confidence in the growth potential of BPI particularly
amidst the projected expansion of the Philippine economy over the next few years.
Effects/implications to the company’s operations: BPI investment will help spur growth in the
Philippine economy, stimulate business activity and provide much needed employment
opportunities for Filipinos.
2. Globe Telecom
- Acquired in 1993, commonly shortened as Globe, is a major provider of
telecommunications services in the Philippines. The company operates the largest mobile
network in the Philippines and one of the largest fixed-line and broadband networks.
Structure: Conglomerate Combination
Method/Legal Forms: Stock Acquisition
Reason/s: Ayala partners with SingTel in Globe Telecom to pursue network
modernization and to provide high-speed internet access.
Effects/implications to the company’s operation: Globe's dividend payments are
consistent, given its healthy operating results and cash flows. As we all know users of
Globe are vast due to its fast connectivity and affordable.
3. Cebu Holdings
- Acquired in 2016, Cebu Holdings, Inc. develops, manages, and markets real estate.
The Company's projects include high-rise residential condominium sales and sale of
sports club shares. The Company has operation in hotel management.
Structure: Horizontal Integration
Method/Legal Forms: Stock Acquisition
Reason/s: That land is now the 50-hectare CBP estate, which showcases the company’s
operational excellence in strategic land management, integrated development, commercial
business operations and management, and hotel development operations.
Effects/implications to the company’s operations:   Since the Ayala Corporation main
business is real estate it would preferable that they invest the same industry and same level. In
effect it would be more profitable that help the Ayala Corporation portfolio.
4. Zalora Philippines
- Acquired in 2017, Zalora Philippines is the country’s largest online fashion
marketplace where customers can choose from over 120,000 products across more than
1,000 brands. The company also has a logistics platform that allows it to deliver its
customer purchases directly to their homes.
Structure: Conglomerate Combination
Method/Legal Forms: Stock Acquisition
Reason/s:Ayala aims to capture the growing opportunities in e-commerce amid a robust
domestic consumer market and an increasingly digital environment.
Effects/implications to the company’s operations:    The group recognizes that e-commerce is
a unique growth channel that complements existing businesses, drawing on synergies with the
rest of the Ayala group.