CIC, KKR consortium aborts bid for Yum! Brands unit

Competitive market: Customers walk out of a Pizza Hut store downtown Shanghai. The consortium values the unit at roughly US8bil, about 20 lower than what Yum is seeking for China’s most popular fast-food chain. – Reuters

HONG KONG: A consortium backed by sovereign fund China Investment Corp (CIC) has withdrawn its bid for control of Yum! Brands Inc’s Chinese business after failing to agree on a price with the operator of KFC and Pizza Hut eateries in the nation, a person with knowledge of the matter said.

The investor group, which also includes KKR & Co and Baring Private Equity Asia, informed Yum’s board recently that it doesn’t plan to proceed with the offer, the person said, asking not to be identified because the matter is confidential.