Japanese finance firm SoftBank Corp (TYO: 9984) have updated shareholders on the potential of a merger deal with internet unit Yahoo Japan (TYO: 4689) and messing app operator Line Corp (TYO: 3938).

Shares of SoftBank are 1.64% to the good, trading at JPY 4,330. 18/11/19 11:07BST.

The move by SoftBank looks to develop a $30 billion tech titan, to compete with firms such as Rakuten (TYO: 4755) and Amazon (NASDAQ: AMZN).

The deal would merge two of Japan’s biggest QR code payment services, and give a chance for SoftBank to access a huge consumer base.

SoftBank could exploit up to 164 million line users, and their data consumption habits in Japan and the wider Southeast Asian market.

The deal comes as SoftBank Group founder Masayoshi Son battles to restore his reputation after a disastrous investment in office-sharing firm WeWork.

“In the case of WeWork, I made a mistake,” he told investors at a news conference in Tokyo. “I won’t make any excuses. It was a very harsh lesson.”

The merger is driven by the two companies’ “sense of crisis” over the rise of tech giants from the U.S. and China, Line CEO Takeshi Idezawa told a news conference, wearing a tie in Yahoo Japan’s red corporate colour.

The companies are looking to agree a concrete plan in the next month, with will see SoftBank and Naver (who own Line) start an equally owned business in a 50:50 deal

SoftBank’s shareholders will be relatively pleased with the plans to merge the two firms, as this should expand their foothold in the market where competitors have seen slumps.

Of note, HSBC (LON: HSBA) and Lloyd’s (LON: LLOY) have experienced slumps in their respective third quarter updates, at a time where the global finance industry has been brutal to all businesses irrespective of market cap.

Certainly the move from SoftBank is one of bold statement and will give competitors something to think about considering the potential size of the newly formed company.