Morgan Stanley, Mitsubishi to Integrate Japanese Securities Businesses

Mitsubishi UFJ Financial Group (MUFG) and Morgan Stanley have announced plans to integrated their securities operations in Japan.

Joint venture operations between the two firms as expected to begin on May 1, 2010 with both parties collaborating on a number of business and product areas in Japan.

MUFG and Morgan Stanley have agreed to create two companies comprising the joint venture—Mitsubishi UFJ Morgan Stanley Securities Co. (MUMSS) and Morgan Stanley MUFG Securities Co. (MSMS). MUMSS will continue operating in the existing Japan-based retail, middle markets, capital markets and sales and trading business of Mitsubishi UFJ Securities Co. The investment banking team of Morgan Stanley Japan Securities Co. will be integrated with the investment banking team of MUS.

In a company statement, Nobuo Kuroyanagi, President and Chief Executive Officer of MUFG, said, “Finalizing this agreement with Morgan Stanley represents a tremendous step forward for our two organizations' overall strategic alliance. MUMSS and MSMS aim to effectively meet the increasingly sophisticated and diverse financial needs of our extensive client base by merging MUFG's comprehensive domestic financial service network with MS's global reach and high quality products and services.”

Added James Gorman, President and Chief Executive Officer of Morgan Stanley, “Today's agreement underscores our strong commitment to Japan. We look forward to pursuing our common goals to create a new powerful leader in the Japanese securities industry, while continuing to leverage our strong global strategic alliance with MUFG.”