Large business combinations in Japan are normally carried out through reciprocal ownership of common stock. These networks, or keiretsu, involve a large number of diversified companies centered around a large bank, industrial firm, or trading firm. One of the main benefits of this structure is argued to be:

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The reciprocal ownership of common stock in keiretsu helps to reduce financial distress costs for each individual company in the network, as they can rely on support from other companies in the network when needed. This can also help to stabilize the overall Japanese economy. While keiretsu can have monopolistic tendencies, this is not necessarily the main benefit of the structure. Large scale diversification and efficient management are also potential benefits, but they are not as directly related to the reciprocal stock ownership structure.

Large Business Combinations in Japan Are Normally Carried Out Through