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Antitrust watchdog grants Smart Service Ltd request to acquire KFC business in Russia

It is reported that after the deal is completed, both the chain's own restaurants and partner restaurants will continue to operate under the Rostic's brand

MOSCOW, November 25. /TASS/. The Federal Antimonopoly Service (FAS) has granted Smart Service Ltd LLC’s petition to acquire the Russian KFC fast-food chain, the regulator said in a statement on Friday. The company will take over 70 restaurants and become a franchisor for more than a thousand partner restaurants.

"The Federal Antimonopoly Service of Russia granted the petition of Smart Service Ltd LLC to acquire the Russian KFC business," the statement says.

Smart Service Ltd plans to acquire a 100% stake in the charter capital of Yum! Restaurants International Russia CIS from Cypriot company Cyprus Caramel Restaurants Limited.

As a result of the transaction, the acquirer will take ownership of 70 restaurants and become a franchisor for 1,058 partner restaurants.

After the deal is completed, both the chain's own restaurants and partner restaurants will continue to operate under the Rostic's brand.

According to the regulator, the deal will not affect the state of competition in the catering commodity market. It will save jobs and ensure the further operation of the organization within the country, the statement says.

On November 14, FAS received a petition from Smart Service Ltd to acquire the Russian business of KFC. In total, there are about 1,100 KFC restaurants in Russia. Yum Restaurants Russia LLC, a Yum! Brands division, manages about 70 KFC outlets in the country.

In early March, Yum! Brands announced the suspension of operations of KFC restaurants in Russia. However, franchise outlets were able to continue operating. As the chain's press service reported, most of the restaurants operating in Russia under the KFC brand are managed under franchising agreements and owned by Russian legal entities. These outlets continue to operate as usual.

Earlier, a source close to the acquiring company told TASS that the chain's name would change to Rostic's. After the deal is closed, Yum! Brands will terminate its corporate presence in Russia.

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