SM acquires Goldilocks

MANILA -- Acquisition by SM Retail, Inc. of Goldilocks Bakeshop, Inc., the country’s largest bakeshop chain, can now proceed as the Philippine Competition Commission (PCC) accepted the commitments of the former to ensure competition in the cakes and pastries industry.

The SM Group submitted voluntary commitments to the PCC after the Commission’s Mergers and Acquisitions Office (MAO) issued a Statement of Concerns (SOC) to the parties.

In the transaction, the PCC has seen competition issues in the deal, such as the possible unfair treatment of SM to Goldilocks’ competitors.

Under the deal, PCC’s MAO pointed out that the transaction might totally or partially foreclose other players in cakes and pastries sector.

Total market foreclosure means other bakeshop chains are barred to do their business in SM malls, while partial market foreclosure would mean allowing other players to be tenants of the mall but their location

would be in a competitive disadvantage compared to Goldilocks' spot.

“While selection of tenants in a mall is market-driven and based on consumer preferences, a mall operator should not be allowed to discriminate mall tenants and lease applicants, especially those that compete with stores owned by the mall itself,” PCC Chairman Arsenio Balisacan said.