KFC, Pizza Hut India Operators to Merge in $933 Million Deal

Two franchise operators of KFC and Pizza Hut restaurants in India have agreed to merge in a share-swap deal worth about $933 million to scale up and cut costs, in a market weighed down by weak consumer demand and intense competition.

Devyani International Ltd., an Indian franchisee of US fast-food company Yum! Brands Inc., will issue 177 shares for every 100 shares of Sapphire Foods India Ltd., according to an exchange filing Thursday. Before the deal, the two companies ran seperate but parallel operations for the KFC and Pizza Hut chains across the country. The transaction will bring them under a single entity.