Morgan Stanley, Mitsubishi UFJ to form finance JV

[July 01, 2009]  TOKYO (AP) -- Mitsubishi UFJ, Japan's largest bank, and Morgan Stanley said Wednesday they will form a joint venture to pursue corporate financing business in the U.S., Canada and Latin America.

Mitsubishi UFJ is eager to expand its reach overseas and took a major step late last year, when it paid $9 billion for a 21 percent stake in Morgan Stanley. The deal was a lifeline for the U.S. bank, which was on the brink of collapse due to the unfolding financial crisis.

The companies said in March they would merge their Japanese brokerage units into a new securities company.

The joint venture announced Wednesday, Morgan Stanley MUFG Loan Partners, will be capitalized at $500,000, the companies said in a press release.

They also announced a deal in which MUFJ subsidiary, Bank of Tokyo-Mitsubishi UFJ, would refer commodities business to Morgan Stanley.

In a separate agreement, MUFG employees will be sent to Morgan Stanley to "maximize the benefits of the strategic alliance."

Japan's biggest brokerage Nomura Holdings Inc. also took advantage of the financial crisis to make acquisitions, swooping in to acquire the operations of fallen giant Lehman Brothers in Europe, Asia and the Middle East.

[Associated Press]

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