India clears KFC and Pizza Hut merger: Sapphire Foods to join Devyani International
India’s competition regulator has approved the merger of Sapphire Foods India into Devyani International, bringing two of the country’s biggest KFC and Pizza Hut franchise operators under one roof. The Competition Commission of India (CCI) announced the approval on 31 October 2026, in a release published by the Press Information Bureau.
The deal envisages Sapphire Foods merging with and into Devyani International, along with certain related transactions. Both companies run KFC and Pizza Hut franchise outlets across India. Devyani is also the exclusive franchisee in India for Costa Coffee, New York Fries and Sanook Kitchen, and it owns and operates several homegrown brands.
The merger was proposed earlier this year and is expected to create a restaurant business with more than 3,000 stores and annualised turnover of about Rs 8,000 crore. Those are expected figures for the combined business, not the deal price. The CCI said a detailed order would follow.
Approval is a major step, but it does not mean the merger is complete. The companies still need to satisfy the remaining closing conditions before the combination can take effect. Until then, Sapphire and Devyani remain separate companies, and customers are unlikely to notice any immediate change in their local KFC or Pizza Hut restaurants.
The decision was one of five approvals in the same round, also covering Aditya Birla Renewables’ purchase of Solenergi Power from Shell, valued at about Rs 17,200 crore, Adani Energy Solutions’ Rs 3,050 crore purchase of IntelliSmart Infrastructure, a Prosus unit’s stake in Navi, and Vega SAS taking a 16.2 per cent stake in Vodafone Group.
Why it matters
India’s fast-food market is growing quickly, and scale matters in it. A combined Devyani–Sapphire will have a bigger store network, stronger buying power and a wider spread of brands, from fried chicken and pizza to coffee. That could mean faster openings in smaller cities and shared supply chains, although the companies have not yet set out a detailed integration plan. Clearing five large deals in one round also shows the regulator working through a busy pipeline of mergers and acquisitions.
What happens next
The next step is the CCI’s detailed order, which will explain the basis for the approval. After that, the companies will work through the remaining approvals and closing conditions. Watch for a timetable for completion and a date for operating as a single group.
This article is for general information and education only. It is not legal or financial advice.
Sources
- https://www.newkerala.com/news/a/cci-clears-five-major-deals-across-food-energy-262.htm (New Kerala, 31 October 2026)
- https://www.livelawbiz.com/competition-law/cci/competition-commission-of-india-approves-merger-saphhire-foods-india-limited-with-devyani-international-limited-556717 (Live Law, 31 October 2026)
- https://www.technologyforyou.org/cci-approves-merger-of-sapphire-foods-india-with-and-into-devyani-international-and-related-transactions/ (Technology For You, reproducing the Press Information Bureau release, 31 October 2026)
