FAS RUSSIA APPROVED APPLICATION OF SMART SERVICE TO ACQUIRE THE RUSSIAN BUSINESS OF KFC

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

LLC Smart Service Ltd plans to acquire from Cyprus Caramel Restaurants Limited a 100% stake in the authorized capital of LLC Yam! Restaurants International Russia CIS.

The acquired company develops the KFC brand in the territory of the Russian Federation through its own restaurants and an extensive partner network operating under a franchise. After the conclusion of the transaction, both the chain's own restaurants and partner restaurants will continue to operate under the brand Rostic's, the rights to which are also transferred under the transaction.

During the consideration of the application, FAS Russia assessed the impact of the transaction on competition within the regions of the companies' presence and did not identify the intersection of the activities of its participants. In addition, the catering market as a whole is assessed as highly competitive, there are no prerequisites for the emergence or strengthening of a dominant position.

According to FAS Russia, the deal will not affect the state of competition in the commodity markets of public catering. It will save jobs for employees and ensure the further activities of the organization within the country.