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Tag: PCC

  • SM scraps Goldilocks acquisition deal

    SM scraps Goldilocks acquisition deal

    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.

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  • SM acquisition of Goldilocks OKd

    SM acquisition of Goldilocks OKd

    SM Retail has received approval from the Philippines antitrust body to acquire the Goldilocks Bakeshop chain.

    This follows the two parties submitting commitments to address potential competition issues in the deal, says the Philippine Competition Commission (PCC).

    SM Retail is a subsidiary of SM Investment (SMIC), which through another subsidiary, SM Prime Holdings (SMPHI), runs nearly 70 SM Malls in the Philippines. On the other hand, Goldilocks has a network of more than 500 stores, some of them in SM Malls.

    Potential concerns included the possibility that retail space in SM Malls might be limited for Goldilocks’ competitors. There were also concerns SM Retail might gain access to sales information from competitors and share it with Goldilocks.

    PCC chairman Arsenio Balisacan says mall owners should not be allowed to discriminate when it comes to tenants and lease applicants, “especially those that compete with stores owned by the mall itself”.

    After the acquisition, Goldilocks will become a subsidiary of SM Retail.

    In its voluntary commitment, which the PCC approved in December, SMPHI undertook to give Goldilocks’ competitors “a fair share in their lease at all times”.

    SMPHI also committed to data protection: not to allow Goldilocks access to competing tenants’ information, including sales data captured by the POS system of SMPHI tenants.

    “The commission appreciates SM’s move to make these voluntary undertakings – proof that PCC and the business community can work together to promote a culture of competition,” says Balisacan.

    The SM Group is also legally bound to comply with its commitment and submit reports to the PCC. The parties will be monitored periodically by a team of PCC experts over a five-year period. This will include random inspections, says the commission.

    SM Group negotiations to acquire a controlling stake in Goldilocks Bakeshop were revealed in August.i

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  • Philippine court freezes PCC probe into SMC sale

    Philippine court freezes PCC probe into SMC sale

    The Philippines’ Court of Appeals has halted the Philippine Competition Commission’s (PCC) investigation into Globe and PLDT’s joint acquisition of San Miguel Corporation’s telecoms assets.

    The court has agreed to a request by PLDT to grant temporary relief while the case is before the courts, issuing a preliminary injunction against the competition regulator’s proe.

    Accordingly the PCC will be prohibited from continuing the investigation into the acquisition until further notice.

    The court agreed with PLDT’s assertion that the “deemed approved” status assigned to the acquisition gives PLDT a right to be protected from the investigation.

    But before the injunction can take effect, PLDT will be required to submit a 1 million peso ($21,500) cash bond to address any damages the regulator will suffer if the court decides that PLDT is not entitled to an injunction.

    Globe and PLDT arranged in May to acquire San Miguel’s telecoms assets for a combined $1.5 billion, finally giving the incumbent operators access to the 700-MHz spectrum they had been seeking for a long time.

    But the PCC announced in July it plans to conduct a full investigation into the deal to evaluate the potential impact on competition. Both PLDT and Globe responded by petitioning the court seeking to have the “deemed approved” status upheld, and these actions were later consolidated into one case.

    Despite the ongoing case, the operators have wasted no time taking advantage of the new spectrum, with Globe recently announcing it had deployed more than 150 compatible 700-MHz base stations in the past three months.

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