India's KFC and Pizza Hut operators Sapphire Foods and Devyani International said on Thursday they will merge in a $934 million deal to create a fast food franchise giant. As part of the deal, Devyani will issue 177 shares for every 100 Sapphire shares, and expects the combined entity to generate an annual synergy of 2.1 billion to 2.25 billion rupees over the full year of operation for the second year. The two companies are partners of Yum's Restaurant Group, operating more than 3,000 stores in India and overseas, including KFC and Pizza Hut dine-in restaurants, and competing with the Indian operators of McDonald's and Domino's pizza chains.

India's KFC and Pizza Hut operators Sapphire Foods and Devyani International said on Thursday they will merge in a $934 million deal to create a fast food franchise giant. As part of the deal, Devyani will issue 177 shares for every 100 Sapphire shares, and expects the combined entity to generate an annual synergy of 2.1 billion to 2.25 billion rupees over the full year of operation for the second year. The two companies are partners of Yum's Restaurant Group, operating more than 3,000 stores in India and overseas, including KFC and Pizza Hut dine-in restaurants, and competing with the Indian operators of McDonald's and Domino's pizza chains.