June 20^th, 2005 (11:31pm) - On Monday, Japanese toy maker Bandai revealed that its planned takeover of videogame publisher and developer Namco would be a $1.6 billion deal. The two companies plan to form the holding company Namco Bandai Holdings Inc. on September 29, in which Bandai would hold a 57% stake in the company, and Namco having the remaining 43%. This collaboration will form the second largest toy and videogame manufacturer in Japan after Sega Sammy Holdings.

United, Namco Bandai Holdings will look to expand into new territories, looking to make use of Bandai’s popularity in Europe and Asia, and Namco’s popularity in North America. This collaboration, according to Bandai President Takeo Takasu, will allow the company to develop games more efficiently and even beef up their content for mobile networks. However, there are no plans for major restructuring of the two companies; only the reduction of distribution costs by streamlining their networks.

"Bandai and Namco are both entertainment companies but because they focus on different areas the overlap will be small and the potential for synergies quite large," Takasu told a news conference.

As Namco Bandai Holdings, the two companies plan to increase their annual profit by 40% to 55 billion yen, and boost group sales approx. 20% to 550 billion yen in three years.