(Reuters) — Japan’s SoftBank plans to merge internet unit Yahoo Japan with messaging to create a $30 billion tech giant, as it bags struggling internet companies to bulk up against rivals like Rakuten.

The telco in a statement said Yahoo Japan, which last month changed its name to Z Holdings, will merge with Line, owned by South Korea’s Naver, in a deal to be completed in October 2020.

The companies aim for a definitive agreement by next month in a transaction that will see SoftBank and Naver form a 50:50 venture that will control Z Holdings, which will in turn operate Yahoo Japan and Line.

SoftBank Corp and Naver, which owns 73% of money-losing Line, plan to launch a tender offer for Line’s remaining shares

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