The Japanese video game developer Tecmo, responsible for the development of the Ninja Gaiden franchise, has rejected a takeover bid from Square Enix, instead opting to merge with rival Koei.

Tecmo has stated that Koei can offer a "greater chance of boosting corporate value", and has ruled out any future offers from Final Fantasy developers Square Enix.

Tecmo and Koei have stated that "through a merger, we expect we can grow further by respecting both companies' identities and having an environment in which employees can fully exhibit their skills".

Even after the merger has completed however, the resulting company will still be less than a third the size of Square Enix. Check out the full story at Reuters.