Mitsubishi mulls securities unit merger with Morgan Stanley

October 3rd, 2008 - 1:41 pm ICT by IANS  

Tokyo, Oct 3 (Xinhua) Mitsubishi UFJ Financial Group (MUFG) is mulling merging its securities unit with US investment bank Morgan Stanley’s Japanese securities unit, Kyodo News Agency reported Friday.The merger of Mitsubishi UFJ Securities Co. with Morgan Stanley Japan Securities Co., if realised, will make one of the largest wholesale securities service firms in Japan, whose business includes mergers and acquisitions as well as bond underwriting.

Further negotiations between the two firms are expected to pinpoint the method and timing of the merger as well as strategies to boost their overseas presence, Kyodo quoted sources close to the matter as saying.

The move came after MUFG, Japan’s largest banking group, said Monday that it will acquire a 21 percent stake in Morgan Stanley, the second-largest US investment bank, on a voting rights basis for $9 billion.

The capital injection deal will make MUFG the top shareholder in Morgan Stanley.

Morgan Stanley Japan Securities posted a net profit of 3.2 billion yen on operating revenues of 213.9 billion yen in its fiscal year to March. It has 1,600 employees.

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