New Delhi, Jan. 2 -- Two franchise operators, Devyani International and Sapphire Foods, have announced a merger in a share-swap deal, creating one of the largest and most diversified quick service restaurant (QSR) platforms in India.

In an exchange filing on Thursday evening, the Board of Directors of Devyani International and Sapphire Foods India, at their respective meetings, approved a scheme of arrangement for the merger of the two companies, marking a strategic consolidation of the two companies, as per a press release available on exchanges.

A Bloomberg report pegs the deal size at $933 million. The transaction consolidates KFC and Pizza Hut operations in India under a single operator, backed by Yum! Brands. Prior to this, Devyani...