Japanese toy companies Takara and Tomy have agreed to merge.  Takara had been under stress recently; Konami sold its major share (see 'Konami Sells Takara Stock') and the company had been unable to find a hit to replace its massive success with Beyblade.  The combined company will be about 60% the size of U.S. toymaker Hasbro. 

 

Takara owns 51% of U.S. manga publisher Brocolli

 

This is the second major Japanese toy deal in recent weeks; Bandai recently acquired videogame maker Namco (see 'Bandai Acquires Namco').