UPDATE: MUFG, Morgan Stanley Japan Sec Units To Merge-Source
25 March 2009 - 2:13PM
Dow Jones News
Mitsubishi UFJ Financial Group Inc. (8306.TO) will likely merge
its brokerage unit with Morgan Stanley's (MS) Japan unit next year
and hold a 60% stake in the combined entity, a person familiar with
the matter said Wednesday.
The merger announcement between unlisted Mitsubishi UFJ
Securities and Morgan Stanley Japan could be made as early as this
week, the person added.
MUFG aims to merge the brokerage units in the spring of 2010
after establishing an intermediate holding company where the new
brokerage and affiliated companies will operate.
If the merger is completed, it would create the nation's third
largest brokerage firm in terms of operating revenue after Nomura
Holdings Inc. (8604.TO) and Daiwa Securities Group Inc.
(8601.TO).
A Morgan Stanley spokesman in Tokyo declined to comment on the
status of merger talks, while MUFG said in a statement that there
was no truth to reports both companies had agreed to the
merger.
Last September, Japan's largest bank invested $9 billion to buy
a 21% stake in Morgan Stanley following the collapse of Lehman
Brothers in the wake of the U.S. subprime mortgage lending
crisis.
Both MUFG and Morgan Stanley have been in talks and have said
they aim to release more details on their relationship by June
30.
The possible deal could compliment Mitsubishi UFJ Securities'
retail network and Morgan Stanley's expertise in investment banking
operations such as its M&A advisory business.
-By Atsuko Fukase, Dow Jones Newswires; 813-5255-2957;
atsuko.fukase@dowjones.com