American private equity company Carlyle Group is in talks to acquire Mitsubishi’s 35% stake in KFC Holdings Japan, the entity that operates the Kentucky Fried Chicken brand in the country.
Mitsubishi is in the advanced stages of concluding a deal for its shares anticipated to be finalised by the end of next month.
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Carlyle then intends to privatise KFC Japan.
Japanese restaurant operator Colowide and other parties expressed interest during the bidding process, but Mitsubishi chose to proceed with Carlyle.
Should Carlyle secure the deal, it is expected to launch a takeover bid to acquire the remaining shares.
The development follows Mitsubishi’s February 2024 announcement that it planned to sell its 35% equity stake in KFC Holdings Japan as part of a strategic asset reshuffle to bolster its earnings capacity.
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By GlobalDataThe sale is projected to generate tens of billions of yen.
KFC Japan’s origins trace back to 1970 as a joint venture between the then-US-based KFC Corporation and Mitsubishi. Mitsubishi ascended to the role of parent company in 2007 but scaled back its shareholding to 35% in 2015.
KFC brand owner Yum! Brands and KFC Japan have no capital relationship. Their franchise chain agreement allows them to share the same brand and some products.
Due to the agreement with Yum, KFC Japan’s operations are confined to Japan.
As of December 2023, KFC Japan has 1,230 outlets, around 40% of the number of McDonald’s outlets in Japan and only a 5% increase over the past decade.
