both nissho and iwai emerged as metals and machinery trading companies after world war ii but were significantly smaller than the four largest "sogo shosha" competitors (mitsubishi corporation, mitsui & co., itochu and marubeni). iwai was poorly managed after the war and was on the brink of failure in the early 1960s, while nissho was profitable and successfully expanding overseas. the japanese government directed the merger of the two companies in 1968, forming the fifth largest trading company in japan (falling back to sixth place in 1972 behind sumitomo corporation). sanwa bank played a role in the merger and the combined firm became the trading arm of the sanwa group "keiretsu".