Koei and Tecmo have issued a joint, Japanese-language press release stating the formal details of their merger.

Reporting on the release, Reuters writes that under the deal Koei will take over Tecmo in a stock agreement worth 20 billion yen (US$206m, £137m). This is about twice the estimated valuation of Square Enix’s earlier rejected attempt to take over Tecmo.

The Koei and Tecmo merger will culminate in April 2009 with the founding of Tecmo Koei Holdings. Current Koei stockholders will receive 1 share in the new company for every Koei share they own, while Tecmo stockholders will receive 0.9 shares in Tecmo Koei Holdings per Tecmo share.

Talks of buyouts and takeovers began to swirl around Tecmo in late August, when Square Enix announced intentions to purchase a majority stake in the company. Tecmo rejected that offer in early September to focus on negotiations with Koei. The company later explained that this move was “concretely beneficial to Tecmo shareholders.”

Pictured: Warriors Orochi 2, Koei/Team Omega