The Fair Trade Commission (FTC) yesterday approved the takeover of Yum Restaurants (Taiwan) Co (台灣百勝肯德基) by Jardine Matheson Holdings Ltd, saying the deal did not create a monopoly.
Hong Kong-based Jardine, which owns Pizza Hut operator Jardine Food Services (Taiwan) Co (富利食品), received permission to acquire 100 percent of Yum Restaurants, which runs Kentucky Fried Chicken (KFC) in Taiwan, through its subsidiary, Jardine Matheson Europe BV.
The Cabinet-level commission said the ownership of both chains would not change the way Pizza Hut and KFC run their businesses, as they have different product appeal.
The threshold for operating Western fast food businesses in Taiwan is low, with diversified product offerings on the market, the commission said. As such, the deal with Jardine will not change the market structure, it said.
Yum Restaurants could see its competitiveness enhanced after the takeover brings in new capital, it said.
Yum Restaurants was originally owned by KFC’s US headquarters but its performance was lackluster.
In December, the head office decided to let Jardine take over operations of its KFC restaurants in Taiwan.