Z Holdings Corp., operator of Yahoo Japan online services, and messaging app provider Line Corp. merged on Monday to expand their online services globally as they aim to better compete with U.S. and Chinese tech giants.

With a combined user base of about 150 million in Japan, the merger of Z Holdings, a SoftBank Group Corp. subsidiary, and Line will make it one of the biggest information technology companies in the country.

"We would like to launch a global smartphone app" in the future to expand online services worldwide with the help of global tech firms in which SoftBank Group's nearly $100 billion Vision Fund has invested, said Takeshi Idezawa, Z Holdings joint CEO and former Line president, at a news conference.