Yum China to buy controlling stake in Chinese-style dining franchise brand to expand biz

Yum China Holdings, a leading Chinese restaurant firm, will buy a controlling interest in the Huang Ji Huang group, a Beijing-based Chinese-style casual dining franchise business. With this acquisition, Yum China targets to gain a stronger foothold and enhanced know-how in the Chinese dining space.

The deal is expected to close in early 2020, subjective to the satisfaction of closing conditions and regulatory approvals.

Founded in 2004, Huang Ji Huang group has more than 640 restaurants in China and internationally. The group is operating primarily under a franchise model. Its brand portfolio consists of "Huang Ji Huang," an industry-leading simmer pot brand, and "San Fen Bao," a newly opened Chinese fast food concept in China.

Yum China is the largest restaurant company in China. It has more than over 8,700 restaurants in over 1,300 cities as of June 30.