SM backs out of Goldilocks deal

SM Investments Corp. (SMIC) on Thursday said fully-owned subsidiary SM Retail Inc. has decided not to push through with the planned acquisition of Goldilocks Bakeshop Inc., citing changes in the business environment.

Talks on a possible investment or partnership deal between the two parties were confirmed in August 2017.

“Regarding the proposed acquisition by SM Retail of Goldilocks, both SM and Goldilocks have jointly agreed not to pursue the transaction given changes in the general business environment,” SM said in a statement. It did not elaborate.

Earlier this month, the Philippine Competition Commission has approved the deal, but with certain conditions. The antitrust watchdog is mandated to review all business transactions valued at P1 billion and above to ensure no anti-competitive practices would come out of such deals.

Under the conditions, SM must open its books to random independent audits to ensure all competitors of Goldilocks in SM shopping malls operate in a level playing field—that the acquisition would not be disadvantageous to its mall tenants.

Goldilocks operates over 400 stores, locally and in the United States and Canada. —Jon Viktor Cabuenas/VDS, GMA News