CB Richard Ellis, Ikoma to Merge in Japan

CB Richard Ellis Inc., the world’s largest real estate services company, said it has agreed to merge its business in Japan with Ikoma Corp. The merger with Osaka-based Ikoma, which has 21 offices, would expand CB Richard Ellis’ presence in Japan and give it a stronger foothold for Asian operations. The merged entity would be 80% owned by Ikoma and 20% by Los Angeles-based CB Richard Ellis. Other terms were not disclosed. Ikoma’s President Tatsumi Hanaya would head the merged companies. CB Richard Ellis is expanding abroad at a time when investors have been concerned it may be harmed by a U.S. economic slowdown. The company’s shares have fallen more than 40% since the beginning of 1998. Its shares fell 19 cents to close at $19.31 on the New York Stock Exchange.