After being just recently approved by the Philippine Competition Commission (PCC), SM Retail Inc.’s acquisition of bakeshop chain Goldilocks Bakeshop Inc. will no longer push through.
In a statement Thursday, SM said that it was due to “changes in the general business environment”.
The retail giant also stated that both parties agreed to the cancellation of the deal.
According to a report by Rappler, Goldilocks president Richard Yee confirmed the news through a statement, saying that “changes in the marketplace” were the reason for the mutual decision.
PCC Commissioner Stella Quimbo, who was informed by the two companies regarding the deal earlier this week, told reporters Thursday that the commission found it “unfortunate but it is a business decision that we respect”.
“The only two things that they told us were that they reviewed the commercial aspects and, second, they alluded to changes in the circumstances of Goldilocks”, the commissioner explained.
She also said that it seems that these changes came about after the commission approved the transaction.
The PCC is an anti-trust body assigned by the law to review business transactions worth P1 billion or higher.
The deal was earlier approved the commission on conditions to which SM “voluntary committed”, such as fair treatment of bakeshop’s competitors in terms of store location chances in SM malls.
It was also ordered that Goldilocks should have no access to competing tenants’ particular sales data once acquired by the retail giant.
Featured photo from Goldilocks’ Facebook page.