18/06/2026

BIZ & FINANCE THURSDAY | JUNE 18, 2026

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Yum Brands strikes two deals to sell Pizza Hut for US$2.7 billion BEIJING/HONG KONG: Yum Brands said on Tuesday it would sell its Pizza Hut chain for a combined US$2.7 billion (RM11 billion) in two deals that highlight separate trajectories for its business in China and the rest of the world. options. US Pizza Hut comparable store sales have declined for 10 straight quarters. The China business, which has 4,375 stores but has been doing much better, will be acquired by its longtime operator Yum China Holdings for US$1.2 billion.

competitiveness for sustainable development,” he said. Yum China, a spinoff of Yum Brands and which counts private equity firm Primavera Capital and Jack Ma’s Ant Group as its main backers, has invested in China-specific products such as black truffle Yunnan mushroom pizza, new store formats and more affordable menu items aimed at cost-conscious consumers. As a result, Pizza Hut has become the largest casual dining restaurant brand in China. Yum Brands and Yum China also agreed to financial incentives tied to KFC China’s growth and will collaborate on expanding Taco Bell in mainland China. – Reuters

and spun off in 1997 alongside KFC and Taco Bell to form the company that became Yum Brands in 2002. Yum, which will retain Taco Bell and KFC, expects the sale to close in the third quarter of 2026, pending regulatory approvals. The acquisition of the Pizza Hut brand in China by Yum China underscores the company’s optimism about the chain’s future in the world’s second-biggest economy, said China-based independent food industry analyst Zhu Danpeng. “From store expansion to growth in revenue and profit per store, as well as an increase in its customer fan base, it is evident that after localisation, Yum China has strengthened its core

The chain’s stores in the US and the rest of the world except for mainland China will be sold to private equity firm LongRange Capital for US$1.5 billion. Those operations, which encompass over 15,500 restaurants in more than 100 countries, have struggled in recent years, hit by rising inflation, higher commodity costs and the growing use of GLP-1 weight-loss drugs, which has nudged consumers toward healthier

“LongRange Capital is effectively buying a globally recognised brand in need of sharper focus, while Yum China’s move gives local operators more control over a key market,” said Sam North, market analyst at eToro. Yum said last year it was exploring strategic options for Pizza Hut and entered exclusive talks with LongRange in May. Pizza Hut was acquired by PepsiCo in 1977

Oil holds steady, stocks rise as US-Iran peace talks loom

Goldman Sachs sets dealmaking records with US$1 trillion in first-half M&As NEW YORK: Goldman Sachs has managed more than US$1 trillion (RM4.06 trillion) worth of announced mergers and acqui sitions so far in 2026, marking a record pace for any investment bank within a half-year period, the Wall Street giant said in a LinkedIn post citing Dealogic data. The figure comes on the back of the investment bank managing SpaceX’s landmark initial public offering as lead left underwriter. The Elon Musk company went public in New York on Friday. The bank also acted as co financial advisers to power company Dominion Energy in its sale to NextEra Energy in a US$66.8 billion deal announced last month. In a separate post, CEO David Solomon said global M&A volumes have already exceeded US$2.6 trillion this year as AI and strategic consolidation reshape industries, while trading volumes have reached all-time highs as clients navigate a range of risk events. Wall Street executives anti cipated a strong year for M&A despite uncertainty stemming from the Middle East conflict, due to a softer regulatory environment under US President Donald Trump and growing momentum in artificial intelligence. “CEOs and boards are taking a long-term strategic view, despite the complex backdrop, to capture scale and amplify their com petitive advantages,” said Matt McClure, global co-head of invest ment banking at Goldman Sachs. “This momentum is playing out globally, with active dialogues continuing across all sectors and transaction sizes.” Goldman’s investment banking fees rose to US$2.84 billion in the first quarter, a 48% jump from a year ago. Shares of the bank have gained about 24% so far in 2026. Goldman Sachs has retained its top ranking for global M&A adviser in 2026 after securing the spot last year, according to Dealogic data. JPMorgan Chase occupies the second position. – Reuters

o Tokyo and Seoul equity markets close at new highs

HONG KONG/LONDON: Oil prices held steady near a three-month low yesterday as investors weighed the impact of a US-Iran peace deal and the International Energy Agency’s warning of a supply overhang next year against firmer near term demand to replenish inventories. Brent crude futures were up 30 cents, or 0.4%, to US$79.26 (RM321.99) a barrel by 1010 GMT, and US West Texas Intermediate gained 24 cents, or 0.3%, to US$76.29. Both contracts hit their lowest level since early March earlier in the session. Most equity markets rose, fuelled by the US Iran deal, with attention now on peace talks and the reopening of the crucial Strait of Hormuz. Crude has tumbled more than 10% this week on optimism for a lasting agreement between the two countries after more than three months of conflict that rattled energy markets and revived inflation. The latest drop was boosted by a report in The Wall Street Journal that Washington could ease sanctions on Iranian crude as part of the deal to end the war, allowing Tehran to immediately sell crude and refined oil products. Both main contracts started yesterday slightly higher after shedding more than 5% on Tuesday before turning negative, though analysts warned that with so many hurdles ahead prices were likely to be sensitive to developments. “The risks are skewed to the upside,” said Fabien Yip, market analyst at IG. “Any failure at the 19 June signing to produce a durable and transparent agreement – particularly on nuclear provisions – could rapidly reverse the recent decline, as each prior false start has demonstrated.

Staff at a securities firm celebrated as the Nikkei Stock Average on the Tokyo Stock Exchange surpassed 70,000 yesterday. The Nikkei rose 0.7% to close at 69,902.25 after touching an intraday high of 70,125.75. – AFPPIC

markets building on their breakneck tech rallies. Japan’s Nikkei share average closed at a record high for a third straight session yesterday, ending just shy of the 70,000 mark. The Nikkei rose 0.7% to close at 69,902.25 after touching an intraday high of 70,125.75. South Korean shares notched a record high close too, as chipmakers jumped on easing worries over oil prices and inflation. The benchmark Kospi ended up 137.64 points, or 1.58%, at 8,864.24, after falling as much as 1.4% earlier in the session. Shanghai, Sydney, Singapore, Mumbai and Taipei also rose, though Hong Kong, Wellington, Manila, Bangkok and Jakarta all fell. Paris rose but London and Frankfurt edged down. – Reuters, AFP

“A sustained recovery in strait traffic remains the most credible evidence that the deal is holding.” Meanwhile, oil industry experts and shipping companies have cautioned that the restoration of normal operations after the strait’s near shutdown will take time. And yestrerday the Organisation for Economic Cooperation and Development said inventories held by member countries fell in May to their lowest level since 1990 as governments drew down stocks to offset the blockage of Gulf crude shipments during the war. Equity markets mostly advanced ahead of the US Federal Reserve’s first policy announcement under new, Trump-appointed boss Kevin Warsh. Tokyo and Seoul enjoyed their best finishes – both

BMW shares hit lowest since November 2020 after profit warning BERLIN: Shares in German premium carmaker BMW fell around 7% yesterday after it issued a profit warning that surprised some analysts and highlighted the challenges facing the broader auto sector. sector, including German rivals Volkswagen and Mercedes-Benz. “This is the tip of the iceberg,“ independent auto analyst Matthias Schmidt told Reuters, adding that others were “not immune”. BMW said it would intensify cost-cutting, with a negative one-off in the second half of 2026. It is a bad start for CEO Milan Nedeljkovic, who took over from longtime leader Oliver Zipse last month.

Brokerage Jefferies said it expected the overhaul would focus on BMW's German operations but may also accelerate localisation in markets, including China and North America, to protect margins. A BMW spokesperson said it was too early to comment on future measures but that capacity reductions were being considered. – Reuters

Some investors had already challenged BMW's outlook given the possible impact of fighting in the Middle East on prices and consumer sentiment. Still, analysts at Deutsche Bank and Jefferies both said BMW's outlook cut was deeper than expected. In addition to lowering its operating auto margin to 1% to 3%, from 4% to 6% previously,

The guidance cut late on Tuesday made BMW one of the first European carmakers to reveal the impact that weakness in China’s domestic car market, the world’s biggest, and pressures arising from the Iran war are expected to have on its 2026 targets. Yesterday’s price fall took BMW shares to their lowest since November 2020 and weighed on shares across the European auto