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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.
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Publication:Japan Weekly Monitor
Date:Mar 30, 2009
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