Takashi Imai, chairman of the Japan Federation of Economic Organizations (Keidanren), said Monday that he supports the Japan Federation of Employers' Associations' (Nikkeiren) setting up a committee to consider a possible merger with Keidanren.

"I welcome that Nikkeiren has started considering a merger of the two organizations," Imai said.

Keidanren, Japan's leading business lobby, is a government-approved corporate body representing over 1,000 companies and industry-wide organizations. Nikkeiren is a non-judicial group of 47 prefectural employers' groups and 60 employers' associations and companies.

"I think the most difficult problem for Nikkeiren to step forward toward a merger is how to deal with its local affiliates," Imai said. "As Nikkeiren is hearing from its local groups about a merger, we've got to wait and see their reactions."

Imai also said the differences in judicial status between the two groups would be a minor problem.

Imai first mentioned the possibility of a merger at the start of this year.

Nikkeiren set up a committee in April to discuss issues and , including how to deal with its prefectural affiliates and administrative systems. the committee is expected to produce a conclusion in the near future.

Nikkeiren Chairman Hiroshi Okuda has said "a merger would be a natural course to take in light of reorganizations among government ministries and among various industrial sectors."