TOKYO (NQN)--Mitsubishi UFJ Financial Group Inc. (8306) announced Wednesday that the bank and U.S. financial services giant Morgan Stanley have decided to establish two companies to integrate their Japanese operations.
One company, Mitsubishi UFJ Morgan Stanley Securities Co. will be created by the combination of Mitsubishi UFJ Securities Co. and the investment banking division of Morgan Stanley Japan Securities Co. The other company, Morgan Stanley MUFG Securities Co., will consist of the stock brokerage division of Morgan Stanley Japan Securities Co.
MUFG will hold 60% of Mitsubishi UFJ Morgan Stanley Securities Co., with the remaining 40% held by Morgan Stanley. The president will be named by MUFG.
Meanwhile, Morgan Stanley MUFG Securities Co. will be 51% owned by Morgan Stanley and 49% by MUFG. The president will be named by Morgan Stanley. These companies will start around May.
MUFG and Morgan Stanley originally agreed to integrate Mitsubishi UFJ Securities Co. and Morgan Stanley Japan Securities Co., with MUFG to take a 60% stake in the merged entity, and its U.S. counterpart a 40% interest. But the two sides have determined that because some operations, including stock dealing, at the Morgan Stanley unit must use the U.S. firm's global network, they ought to be excluded from the deal.