Yum China buys Chinese retail chain Huang Ji Huang
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Yum China Holdings has entered into a definitive agreement to acquire a controlling interest in Huang Ji Huang group, a leading Chinese-style casual-dining franchise business.
Subject to the satisfaction of closing conditions and regulatory approvals, the transaction is expected to close early next year.
Founded in 2004 and headquartered in Beijing, Huang Ji Huang has more than 640 restaurants in China and internationally. The group operates primarily under a franchise model and its brand portfolio consists of simmer pot brand “Huang Ji Huang” as well as “San Fen Bao”, a newly launched Chinese fast food concept.
Yum China is the largest restaurant company in China, with more than 8700 restaurants as of June 30. With the addition of Huang Ji Huang, Yum China aims to gain a stronger foothold and enhanced knowhow in the Chinese dining space, which represents a significant share of the dining market in China.
Questions & Answers
Q.What kind of business does Huang Ji Huang operate?
What kind of business does Huang Ji Huang operate?
Huang Ji Huang is a Chinese-style casual-dining franchise business. It operates primarily under a franchise model, with its main brand being the simmer pot concept “Huang Ji Huang” and a new fast food concept “San Fen Bao”.
Q.How many restaurants does Huang Ji Huang currently have?
How many restaurants does Huang Ji Huang currently have?
Founded in 2004, Huang Ji Huang currently operates more than 640 restaurants. These restaurants are located both within China and internationally, using its franchise business model.
Q.What is Yum China's main reason for acquiring Huang Ji Huang?
What is Yum China's main reason for acquiring Huang Ji Huang?
Yum China aims to strengthen its position and improve its expertise in the Chinese dining sector. This part of the market holds a significant share of the total dining market in China, making the acquisition strategically important.
Q.When is the acquisition expected to be completed?
When is the acquisition expected to be completed?
The transaction is expected to close early next year. This is subject to the satisfaction of various closing conditions and the necessary regulatory approvals being granted before the agreement can be finalised.
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