KKR & Co. and Chinese sovereign wealth fund China Investment Corp (CIC) have reportedly dropped their bid for a majority stake in Yum! Brands, Inc. YUM 0.18%’s China business. Reuters reported that Yum was not prepared to turn over a majority stake in its Chinese business at the price that the bidding consortium was offering.

Yum’s stock is up modestly following the news, and Bloomberg’s Nisha Gopalan believes that the company is better off without the consortium.

“What’s best for Yum China is probably the original plan: List the unit in New York and maybe Hong Kong too, rather than messing around with stake sales,” Gopalan wrote.

Despite ever-intensifying fast food competition from McDonald’s Corporation MCD 0.43% and others, Yum’s KFC remains the top Chinese fast food brand by market share. In 2015, KFC represented about 3.6 percent of the Chinese fast food market, down from 5.2 percent in 2010.

Gopalan said…

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