Why a Bid for China Operator of KFC, Pizza Hut Fizzled

A Chinese consortium including Hillhouse Capital is planning to drop its pursuit to take over the operator of KFC and Pizza Hut restaurants in China, Bloomberg reported. The interest in Yum China Holdings Inc. fell away after the group’s initial bid was rejected and the would-be investors deemed that business conditions for the fast-food chain and China’s macroeconomic picture have worsened, according to people with knowledge of the matter. Chinese consumer spending is softening.