Domino's 2

Domino's Pizza in the UK and Australia have set up a joint venture to buy Germany's biggest pizza chain, Joey's Pizza.

It generates annual sales of €143 million ($156.5m; £103.9m) across 212 stores in Germany. The deal is believed to be worth around £86m.

The venture will be two-thirds owned by Domino's Pizza Enterprises - a listed company in Australia, and a third owned by Domino's Pizza Group - which is listed in London.

Germany is the world's fourth largest pizza market, but Domino's Pizza Group already has some operations in the country. The deal will see the Sydney-listed firm's total number of stores to more than 1,800.

Don Meij, chief executive of Domino's Pizza Enterprises, said: "The acquisition of the market-leading Joey's Pizza business provides immediate scale and marketing presence which we can build from."

Subject to regulatory approval, the deal is expected to be completed early in 2016. Domino's Pizza Enterprises saw its share price rise 12%, meaning it has grown by 125% over the past year.