TOKYO, Japan — Japanese internet firm Z Holdings Corp and messaging app operator Line Corp are set to merge, aiming to create an e-commerce giant spanning finance, retail and other services, the Nikkei business daily reported on Wednesday.

SoftBank, which controls Z Holdings, and South Korea's Naver, which owns Line, are in the final stage of negotiations toward their units' integration, the report said, citing sources.

Z Holdings, formerly known as Yahoo Japan, and Naver did not immediately respond to Reuters' requests for comment.

By Munsif Vengattil; editor: Maju Samuel.