Following well publicised financial troubles at Tecmo, we learn this evening that the merger between the troubled developer and Koei will push ahead in April - this despite a rival offer from Square Enix.

The two Japanese game makers will be consolidated as part one holding company from April of 2009, the deal creating a company worth 207 million USD.

Koei shareholders will own three-quarters of the new company, each shareholder swapping shares on a one-for-one basis. shares will be worth 0.9 shares in the enlarged company, meanwhile.

More on Tecmo's difficulties as we get it.

By Luke Guttridge