Yum China Holdings (9987) said it has completed the $1.2 billion acquisition of Pizza Hut's mainland China ownership rights from Yum! Brands (YUM).

The company said eliminating the 3% franchise fee paid to Yum! Brands should generate cost savings, and it expects the move to lift Pizza Hut's restaurant margin and operating margin after value-added tax by 2.8%. Yum China also plans to accelerate store openings to more than 800 a year, according to Ming Pao.