NEWS - Tuesday, May 3, 2005

Namco And Bandai Announce Merger

Namco and Bandai announce intention to merge Japanese media and videogames firms Namco and Bandai have announced their intention to merge this September, in a move which will create the third-largest videogames company in the region. In an unexpected announcement, the two companies revealed that they intend to create a new holding company, Namco Bandai Holdings Inc, with each existing Bandai share being swapped for 1.5 shares of the new firm, while each Namco share will be swapped directly for one new share. Bandai president Takeo Takasu will become the president of the new holding company, while Namco’s vice-chairman Kyushiro Takagi will act as chairman. The deal is expected to close on September 29th. Namco is one of the longest-established Japanese videogame companies, and has created titles ranging from Pac-Man to Ridge Racer and Tekken, while Bandai is the owner of many of the region’s most valuable media properties - including such enormous game, TV and toy franchises as Gundam and Dragonball. The merger of the two companies will create the third largest videogames company in Japan, ranking just behind Nintendo and Sega Sammy Holdings - another example of the recent trend towards consolidation among Japan’s games companies.


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