Koei will be forming a holding company in spring after the completion of its merger with Ninja Gaiden publisher Tecmo, Bloomberg reports.

Koei president Kenji Matsubara said in an interview that the companies will exchange their share for stock in the new holding company.

"In the 3 trillion yen ($28 billion) global games market, we have revenue of 40 billion yen, which begs the question of whether we can survive,'' Matsubara said. "We plan to make the most of this merger and move on to the next step, which may include acquisitions.''

Japan's Tecmo has been the center of recent M&A activity as of late. Prior to news of the merger with Koei, Final Fantasy house Square Enix offered to acquire Tecmo in August this year.

Shortly afterwards, Tecmo rejected the offer of 920 yen per share, and Square Enix retracted its offer.

Tecmo and Koei announced plans to merge in September, following the lead of Western companies that have been very active in M&A.

Tecmo said that recent worldwide market turbulence will not affect plans for the merger.