Internal Affairs and Communications Minister Kazuhiro Haraguchi revealed a plan Friday to reorganize the Japan Post group through a merger of group companies in a move seen as a step backward for postal privatization.
Streamlining the group structure would be centered on a merger between state-owned Japan Post Holdings Co., the holding company for the group, struggling mail and parcel delivery unit Japan Post Service Co. and post office operator Japan Post Network Co., according to Haraguchi.
The group's banking and insurance units, Japan Post Bank Co. and Japan Post Insurance Co., would operate under the wing of the merged company as the plan envisions trimming the number of group firms from five to three.