Morgan Stanley and MUFG in Japanese joint venture

by Richard Kilner

Story link: Morgan Stanley and MUFG in Japanese joint venture

Morgan Stanley and Mitsubishi UFJ Financial Group, Inc. (MUFG) are embarking upon a securities joint venture having signed a memorandum of understanding.

The deal involves the combination of Mitsubishi UFJ Securities Co., Ltd. and Morgan Stanley Japan Securities Co., Ltd. and marks a further step in the direction of planned co-operation between the two firms.

The new venture will boast a large domestic retail brokerage network, a full range of institutional businesses and a substantial reach across the world.

The management of the new venture will be drawn from both firms, with Mitsubishi UFJ enjoying a 60% stake with the remainder held by Morgan Stanley.

The chairman will be appointed by Morgan Stanley with the president and CEO in the gift of Mitsubishi.

Having formed an alliance late last year the two organisations are intent upon utilising the benefits of such an arrangement to the maximum strategic advantage.

Earlier in the month Mitsubishi UFJ announced it had appointed Nobuyuki Hirano to serve on Morgan Stanley’s board following a $9bn equity investment in the US bank.