Nissho Iwai-Nichimen Holdings Corp. said Tuesday it will merge its core trading house units Nichimen Corp. and Nissho Iwai Corp. on April 1 to cut costs and speed up decision-making.
The new entity will be named Sojitz Corp.
Nichimen will be the surviving legal entity, the holding company said, adding it will rename itself Sojitz Holdings Corp.
Akio Dobashi, president of Nichimen, will head the merged company.
Nissho Iwai President Hidetoshi Nishimura will remain president of the holding company. The appointments is to be formalized following a general shareholders' meeting in June.
Nissho Iwai-Nichimen has been reorganizing group firms to boost the group's marketing ability and rebuild its overall business.
Dobashi said the new company will do its utmost to reduce costs.
"The most important thing for any merger (to be successful) is to maintain harmony (among employees) after the integration of the two companies," he said. "We will thoroughly pursue business efficiency on all business fronts."
Nishimura said the merged company will continue to be controlled under the holding-company structure in light of the need to respond flexibly to any possible changes involving drastic streamlining of its business lines.
While the new name for the holding firm will go into effect July 1, Nissho Iwai-Nichimen will start using its group's new name, Sojitz Group, immediately.
Nissho Iwai-Nichimen was created through the management integration last April 1 of Nissho Iwai and Nichimen.
Meanwhile, Moody's Investors Service said Tuesday it has placed the B1 long-term debt ratings of Nichimen and Nissho Iwai under review for possible upgrade and the review will focus on the likelihood of a fundamental turnaround of the new entity's core business and other matters.