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.