Devyani International, the Indian operator for KFC and Pizza Hut, saw its shares climb by up to 5.3% following the announcement of a merger with its competitor, Sapphire Foods India. This strategic move aims to consolidate the operations of these popular fast-food chains in the region.

Yum! Brands, the parent company of KFC, Pizza Hut, and Taco Bell, manages its Indian operations through franchise partners like Devyani International, Sapphire Foods India, and Burman Hospitality. The proposed merger would unify the two prominent franchise operators under Yum! Brands into one powerful entity managing KFC and Pizza Hut across India.

While the financial details of the merger remain undisclosed by Devyani International, Reuters has reported that the deal is estimated to be worth $934 million. This union marks a significant development in the fast-food industry within the country.

According to a press release from both companies, the merger terms stipulate that Devyani International will issue 117 new shares for every 100 equity shares held by Sapphire Foods India. This agreement aims to streamline operations and enhance their market presence in the region.

Shares of Sapphire Foods India fell as much as 6.4% at the open.

The merger is expected to take effect within 12 to 15 months, subject to regulatory and shareholder approval. The companies said the deal would accelerate KFC’s expansion in the country and help revitalize Pizza Hut, which trails market leader Domino’s by a wide margin.

“India is a high-priority market for us” said Yum! Brands’ chief financial officer Ranjith Roy. He added that the country has abundant room for further growth.

The proposed merger would drive accelerated expansion and create “greater value for both shareholder bases” through improved supply chain operations, he said.

Devyani International, the largest franchisee of Yum! Brands in India, said it expects an annual “synergies” of 2.1 billion rupees to 2.2 billion rupees, or about $23 million to $25 million, starting from the second full year after the merger is completed.

Devyani operates more than 2,000 quick-service restaurant outlets across more than 280 cities in India, Nigeria, Nepal, and Thailand. Meanwhile, Sapphire operates 529 KFC and 338 Pizza Hut restaurants in India, along with 119 Pizza Hut and 11 Taco Bell restaurants in Sri Lanka, where it the the largest international quick-service restaurant chain.

“India has the potential to become a true crown jewel within Yum!’s global markets, and this announcement represents a significant step in that journey,” said Sumeet Narang, nominee director at Sapphire Foods India and Founder of private equity firm Samara Capital.

India has the third-highest concentration of Yum!Brand stores after the U.S. and China, according to the company’s most recent financial report.