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keiretsu

/kiˈrɛtsu/
IPA guide

In Japan, related companies are sometimes closely interlocked in a keiretsu, where shareholders in one company also own shares in the others.

A Japanese clothing manufacturer might share ownership with companies that furnish its fabric and other supplies, as well as with those that warehouse, distribute, and retail its finished products. This is a vertical keiretsu. In horizontal types of keiretsu, a bank and several companies share mutual ownership. The bank helps secure new markets and contracts for the companies, who also share employees and expertise. A keiretsu gives the linked companies a competitive advantage through reduced costs and shared risk.

Definitions of keiretsu
  1. noun
    (in Japan) a group of businesses that are tightly connected through shared or partly shared ownership
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