Morgan Stanley, MUFG to merge Japan brokerages

[March 26, 2009]  TOKYO (AP) -- Morgan Stanley and Mitsubishi UFJ Financial Group will establish a new securities company in Japan next spring by merging their local brokerage units, the two companies said Thursday.

As widely expected, Mitsubishi UFJ Financial Group Inc., Japan's biggest banking group known as MUFG, will take a 60 percent stake in the new entity. The U.S. investment firm will own the remaining 40 percent share.

Since MUFG invested $9 billion in Morgan Stanley in October, the companies have worked toward developing "concrete initiatives for a global strategic alliance," they said in a joint statment.

Their new brokerage will be the third-largest securities company in Japan behind industry leaders Nomura Holdings Inc. and Daiwa Securities Group Inc.

"MUFG and Morgan Stanley have confirmed that our close collaboration with each other and support to the new company are essential to achieve the goal of establishing a preeminent company in the Japanese securities industry, and will discuss details of the integration and the new company to achieve this goal," they said.

Morgan Stanley and MUFG said they are also discussing potential ventures in other business areas.

In trading Thursday, MUFG closed up 1.5 percent at 540 yen on the Tokyo Stock Exchange, in line with broader market gains.

[Associated Press]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.