MUFG and Morgan Stanley Close To Deal

Mitsubishi UFJ Financial Group and Morgan Stanley are planning to create new Japanese brokerage house, according to local media
By None

Mitsubishi UFJ Financial Group (MUFG) and Morgan Stanley are planning to create new Japanese brokerage house, according to local media.

The Nikkei financial daily newspaper has reported that Mitsubishi UFJ has plans to take a 60% stake in the new brokerage, with the formal announcement coming later this week.

The combined brokerage, a merger of their existing Japanese subsidiaries, would be the third-biggest securities firm in Japan.

In October 2008, announced that the two companies reached a definitive agreement under which MUFG invested USD9 billion in equity in Morgan Stanley for a 21% interest in the company on a fully diluted basis.

Shares in Mitsubishi UFJ fell 0.6 percent to 532 yen on the Tokyo Stock Exchange.

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