Mitsubishi UFJ, Morgan Stanley to set up company to assist mergers.
Mitsubishi UFJ Financial Group Inc. and Morgan Stanley said Tuesday they will set up a joint venture to assist mergers and acquisitions as part of their business strategy to enhance alliance.
Japan's top banking group and the U.S. investment bank said they will establish Morgan Stanley MUFG Loan Partners, a loan marketing company to provide firms and clients in the United States, Canada and Latin America with lending and capital market services regarding corporate buyouts.
The fifty-fifty joint venture is expected to be capitalized at
$500,000 and start operations later this month, the two companies said.
The two companies also agreed that the Bank of Mitsubishi-Tokyo UFJ, a core banking unit of MUFG, will refer its clients to Morgan Stanley Capital Group for commodity business.
MUFG President Nobuo Kuroyanagi said at a press conference in New York, ''I am confident that the initiatives we have announced today will enhance both companies' global presence, enable us to better meet the needs of our respective clients and generate increased revenues.''
Morgan Stanley Chairman John J. Mack also welcomed the new business plan. ''We are delighted to be strengthening our strategic alliance with MUFG through these important initiatives,'' he said.
Last October, MUFG acquired $9 billion worth of preferred shares in embattled Morgan Stanley to help the U.S. financial company weather the global financial crisis.
MUFG and Morgan Stanley announced in March that they will create a new securities firm by merging Mitsubishi UFJ Securities Co. and Morgan Stanley Japan Securities Co. by the end of March 2010.
|Printer friendly Cite/link Email Feedback|
|Publication:||Japan Weekly Monitor|
|Date:||Jul 6, 2009|
|Previous Article:||Tokyo Stock Exchange: morning price list -8-.|
|Next Article:||Key 10-year JGB yield rises in morning on selling ahead of auction.|