Printer Friendly

MUFG to take 60% stake in new brokerage firm with Morgan Stanley.

TOKYO, March 25 Kyodo

Mitsubishi UFJ Financial Group Inc. is planning to invest 60 percent of a new securities company it will establish with Morgan Stanley by merging their Japanese units in spring 2010, informed sources said Wednesday.

A formal announcement of the merger of the two brokerage units is expected before the end of the week.

MUFG is likely to take charge of the combined entity after Japan's top financial group made a $9 billion investment in the struggling U.S. investment bank last October. Morgan Stanley will hold the remaining 40 percent stake in the venture, the sources said.

An intermediate holding company that will oversee the new securities firm and affiliated companies is expected to be established under the auspices of the Japanese financial group, they said.

MUFG's brokerage unit Mitsubishi UFJ Securities Co. is known for its strength in underwriting of domestic bonds while Morgan Stanley is active in investment banking businesses including mergers and acquisitions.

If realized, the merger of Mitsubishi UFJ Securities with Morgan Stanley Japan Securities Co. will create one of the largest wholesale securities service firms in Japan.
COPYRIGHT 2009 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Weekly Monitor
Date:Mar 30, 2009
Words:186
Previous Article:Kyodo economic news summary -2-.
Next Article:3RD LD: Japan's Feb. exports, imports both post record fall.
Topics:


Related Articles
LEAD FOCUS: Japan stages comeback to rescue battered Wall Street firms.
2ND LD: MUFG to buy 21% stake in Morgan Stanley for $9 bil.
2ND LD: MUFG mulls merging security unit with Morgan Stanley's Japan unit.
3RD LD: MUFG, Morgan Stanley to merge Japan brokerage units by spring 2010.
2ND LD: MUFG records 1st net loss in FY 2008, eyes profit in FY 2009.
MUFG to acquire $600 mil. worth of Morgan Stanley common stock.
MUFG to acquire $705 mil. worth of Morgan Stanley common stock.
Mitsubishi UFJ, Morgan Stanley to set up company to assist mergers.
MUFG, Morgan Stanley to revise plan to merge Japanese brokerage units.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters