SM scraps Goldilocks acquisition deal
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SM Retail, a subsidiary of SM Investment Corporation (SMIC), has called off a planned acquisition of Goldilocks Bakeshop chain in the Philippines.
This follows the Philippine Competition Commission (PCC) approving the takeover just last month.
Citing changes in the business environment, SMIC corporate secretary Elmer Serrano has confirmed that SM Retail has backed out of the deal, saying it was a joint agreement.
SMIC, through SM Prime Holdings (SMPHI), runs nearly 70 SM Malls in the Philippines, while Goldilocks has a network of more than 500 stores, some of which are in SM Malls. The acquisition would have made Goldilocks a subsidiary of SM Retail.
Both parties had committed to address potential competition issues when submitting details of the proposal to the PCC. Concerns included the possibility of limited retail space in SM Malls for Goldilocks’ competitors. There were also concerns SM Retail might gain access to competitors’ sales information.
Questions & Answers
Q.Why did SM Retail cancel the acquisition of Goldilocks, given the PCC had already approved it?
Why did SM Retail cancel the acquisition of Goldilocks, given the PCC had already approved it?
SMIC corporate secretary Elmer Serrano confirmed that SM Retail backed out due to 'changes in the business environment'. Both parties described the cancellation as a joint agreement.
Q.What specific competition concerns were raised about the acquisition before its cancellation?
What specific competition concerns were raised about the acquisition before its cancellation?
Concerns included the potential for limited retail space for Goldilocks' competitors in SM Malls. There were also worries that SM Retail might gain access to sales information from competitors.
Q.Which company is the parent of SM Retail, and what other businesses does it operate?
Which company is the parent of SM Retail, and what other businesses does it operate?
SM Retail is a subsidiary of SM Investment Corporation (SMIC). SMIC also operates SM Prime Holdings (SMPHI), which runs nearly 70 SM Malls in the Philippines.
Q.How many Goldilocks stores are there, and how does this compare to SM's presence?
How many Goldilocks stores are there, and how does this compare to SM's presence?
Goldilocks has a network of over 500 stores in the Philippines. SMIC, through SM Prime Holdings, operates nearly 70 SM Malls across the country.
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