(Yicai Global) April 9 -- The Chinese KFC licensee of US fast-food giant Yum!Brands has completed its purchase of a majority stake in Chinese simmer pot chain Huang Ji Huang after announcing the plan last August.

After the acquisition, Yum China Holdings will form a Chinese dining business unit with the three brands of Little Sheep, East Dawning, andHuang Ji Huang to gain a stronger foothold in the Chinese food and beverage space, the Shanghai-based company said in a statement on its website yesterday, without disclosing financial details.

Founded in 2004,Beijing-headquartered casual restaurant chain Huang Ji Huanghas over 640 restaurants in China and abroad.

The Chinese catering sector that was hit by the Covid-19 pandemic in the first quarter is expected to recover rapidly once the pandemic is over, an insider told Yicai Global. But regional differences and tough competition make it hard for Chinese restaurant chains to expand, the person added.

Yum China is looking to leverage its scale and system capabilities, as well as the casual dining chain's track record and product prowess to create synergies, it added.

Yum China has exclusive rights to run KFC, Pizza Hut, and Taco Bell outlets in China's mainland. Ithad 9,200 restaurants in over 1,300 Chinese citiesby the end of last year.

China's catering market reachedCNY4.67 trillion (USD660.5 billion) in scale last year, up 9.4 percent from a year earlier, accounting for 11 percent of total consumer goods sales,according totheNationalBureau ofStatistics.

Yum China Holdings [NYSE: YUMC] climbed 3.6 percent to USD44.85 in New Yorkyesterday.

Editor: Emmi Laine