Three major home center operators said Monday they will merge their operations under a joint holding company Sept. 1, 2006, to create Japan's largest home center group.

The three firms -- Homac Corp., based in Sapporo, Kahma Co. in Kariya, Aichi Prefecture, and Daiki Co. in Matsuyama, Ehime Prefecture -- will set up DCM Japan Holdings Co. in Minato Ward, Tokyo, and will become wholly owned subsidiaries of the holding company.

Combined group sales of the three are estimated to total 433 billion yen in fiscal 2005 through next March, surpassing those of industry leader Cainz Corp.