Sega Scraps Plans To Acquire Bandai

Video game giant Sega Enterprises Ltd. has scrapped its planned $1.09 billion acquisition of Bandai Co., maker of Power Rangers action figures, because of opposition among Bandai’s middle managers.

The Japanese companies said Tuesday they would instead create a joint venture to develop their consumer businesses, merchandise Bandai characters and develop new multimedia products.

“Although we can’t merge, we’d like to maintain the spirit and purpose of our agreement,” Sega President Hayao Nakayama said. He added that the cancellation would not significantly change Sega’s long-term strategies.

The deal, announced in January, was seen as an opportunity for Sega to reinvigorate its video game business.