Following Tecmo’s announcement yesterday that it is seeking a merger with fellow Japanese publisher Koei
, Square Enix formally withdrew its offer of a friendly takeover.
The withdrawal of the offer follows a written letter of rejection from Tecmo. Although Square Enix were willing to make minor revisions to the offer, a statement from the company implies that demands made by Tecmo, particularly in regards to the takeover price, made further discussions impossible.
Discussing the withdrawal with Japanese press, Square Enix president Yoichi Wada indicated that he did not know whether the company would try to acquire Tecmo again at a later date.
An AFX news report
suggests that any future deal depends on whether Tecmo wants to work for Square Enix. A merger between Tecmo and Koei would create a company still less than a third the size of Square Enix.
Wada also confirmed that Square Enix was continuing to look at further acquisitions around the world, but failed to give any hint as to what type of businesses the company was most interested in. "We are talking with quite a few companies in and outside of Japan. We are routinely in such talks," he said.