th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

Why Did SM Withdraw Its Bid to Take Over Goldilocks Bakeshop?

This comes less than a month after the Philippine Competition Commission approved the takeover
By Pauline Macaraeg |



SM Group’s property and retailing unit SM Retail Inc. has withdrawn its acquisition bid over bakeshop and restaurant chain Goldilocks Bakeshop Inc. on Thursday, February 1.


“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 sent via SMS to Entrepreneur Philippines.


This comes less than a month after the Philippine Competition Commission (PCC) approved the takeover last January 9. The deal required the SM Group to submit reports to the commission over a period of five years to ensure Goldilocks’ competitors will have “a fair shake in their lease at all times.”



Related story: Now That Sy Family Owns Goldilocks, Will Red Riboon and Other Bakery Chains Have a Fighting Chance in SM Malls? 



The PCC earlier said there may be risks of unfair treatment against Goldilocks Bakeshop’s competitors, which may arise from providing “disadvantageous locations or unfavorable lease terms.” Under the deal, monitoring would also have been done by the PCC to avoid this, which would have included random inspections.


“It’s a completely business decision on their part, we’re happy we went that far and they cooperated (sic). SM presented their undertaking but at the end of the day they decided not to continue their transaction," PCC Chairman Arsenio Balisacan said in a report by ABS-CBN News.


Goldilocks Bakeshop has a total of 159 stores in Metro Manila, 36 of which are located inside an SM mall. In contrast, its closest competitor, Red Ribbon, has 133 stores in NCR—12 of which are tenants of SM.




Goldilocks Bakeshop is owned by the Yee family and was established in 1966. It has maintained a steady financial record over the years, consistently making it to Businessworld’s list of Top 1000 Corporations in the country since 2008. In 2016, it grossed Php6.1 billion in revenues and netted profits of Php204 million, making it the country’s 356th highest earning company.


SM Retail Inc. is a subsidiary of SM Investments Corporation, the country’s largest holding firm. The SM Group is owned by Henry Sy, the country’s richest man, who has a net worth of $21 billion according to Forbes magazine.



Related story: Goldilocks vs Red Ribbon: Who's Winning the Battle of the Cake Makers?  






Pauline Macaraeg is Entrepreneur PH's data journalist. Follow her on Twitter @paulinemacaraeg

Latest Articles

What’s It Like to Drive A Toyota Rush in Balesin?

The entry-level compact SUV from the Japanese car giant was front and center at this year’s Road...

byPaul John Caña | May 27, 2018 09:00:00

This Company Thinks It Can Help You Get Over Your Smartphone Addiction With Stickers

Imagine a life where you're not checking your phone constantly

byNina Zipkin | May 27, 2018 06:00:00

From Oprah Winfrey to Tim Cook, Leaders Offer Gems of Wisdom to the Class of 2018

Inspiration from luminaries and leaders of the world

byNina Zipkin | May 27, 2018 02:00:00

(Look) Inside a Php2-Million First Birthday Party With a Royal Theme

“I wanted an event that was entertaining and will leave guests in awe,” said the proud dad

byKitty Elicay for | May 27, 2018 00:00:00

(LOOK) Who are President Duterte's Cabinet Members That Got Richer in 2017?

At least two department secretaries more than doubled their net worth last year

byPauline Macaraeg | May 26, 2018 10:00:00

In the Journey from Engineer to Entrepreneur, Little Knowledge is Not Always a Bad Thing

The founder of Cebu-based Micab taxi-hailing startup recounts what it took to make the transition

byEddie Ybañez | May 26, 2018 08:00:00

Why Personal Passions and 'Side Projects' Are So Important for Entrepreneurs

Richard Branson loves to kite-ski. David Heinemeier Hansson is a race-car driver

byFiras Kittaneh | May 26, 2018 06:00:00

The Best Way to Win Is to Know When to Quit

Sometimes you have to cut your losses and move on

byDavid Kleinhandler | May 26, 2018 02:00:00

Sports Memorabilia Can Actually Be a Good Investment. Just Ask These Guys

Score big with Hall of Fame Authentics' signed and game-worn sporting items

byEsquire Philippines | May 26, 2018 00:00:00

SEC Approves Php17.55-B IPO of Del Monte Philippines

Operator of world’s largest pineapple plantation needs to clear the Philippine Stock Exchange next

byElyssa Christine Lopez | May 25, 2018 18:00:00

Here’s Why PH’s World Competitiveness Ranking Plunged the Most in Asia

Lower scores in employment and business efficiency were the two biggest factors, according to the...

byLorenzo Kyle Subido | May 25, 2018 16:00:00

How a Tasty Bacon Dish Turned an “Endo” Worker to Owner of a Fast-Growing Chain of Food Stalls

Rica Peñalosa is now franchising her Bacsilog business for Php450,000 per unit

byElyssa Christine Lopez | May 25, 2018 14:00:00