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MUFG, Morgan Stanley to revise plan to merge Japanese brokerage units.

TOKYO, Nov. 18 Kyodo

Mitsubishi UFJ Financial Group Inc. and U.S. investment bank Morgan Stanley have decided to revise their plan to create a new securities company by merging their Japanese brokerage units, sources close to the move said Tuesday.

In March this year, the two companies announced Mitsubishi UFJ Securities Co. would be merged with Morgan Stanley Japan Securities Co. to create Japan's second-largest securities firm in terms of unconsolidated net revenue.

The plan called for MUFG to take a 60 percent stake in the integrated entity with the remaining 40 percent to be put up by Morgan Stanley.

Under the revised plan, Morgan Stanley Japan's trading business will remain under the Morgan Stanley group even after the planned merger.

MUFG will acquire some equity stake in the trading business but Morgan Stanley will basically have control over the business, said the sources.

The sources said the merger date will be postponed from the end of March 2010 to around May 2010, the sources said.

Other conditions MUFG and Morgan Stanley agreed under the initial plan will remain intact, the sources said.
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Publication:Japan Weekly Monitor
Date:Nov 23, 2009
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