Nippon Shokubai Co., Ltd. and Sanyo Chemical Industries, Ltd. have jointly announced to integrate their businesses to tackle the challenge of intense competition between chemical manufacturers in Japan. Both the companies have agreed to establish a holding company in October 2020 until a complete merger expectedly by 2022. Integration of the business will allow both the parties to develop synergies, cut operational costs and streamline overseas operations which will give the new entity a competitive advantage over other players in the industry. Both the companies are expecting to sign a final agreement by the end of 2019, following which the companies would become wholly owned subsidiaries of the newly established parent company. The companies also committed of zero attrition as a result of merger and that the employees shall enjoy the same benefits they had earlier.