Shares of KFC and Pizza Hut Indian operator Devyani jump on merger with rival franchisee Sapphire

Shares of KFC and Pizza Hut Indian operator Devyani International

rose as much as 5.3% after it announced plans to merge with rival franchisee Sapphire Foods India

Yum! Brands

owns fast-food chains like KFC, Pizza Hut and Taco Bell, and operates them in India through franchise partners such as Devyani International, Sapphire Foods India and Burman Hospitality.

The deal would combine the two major franchisee operators for Yum! Brands in India into a single entity, overseeing KFC and Pizza Hut in the country. While Devyani International did not confirm the deal size, Reuters reported that the transaction is valued at $934 million.