MUFG and MS integrate Japan securities firms

Mitsubishi UFJ and Morgan Stanley will form a new company to address the securities needs of wholesale and retail customers in Japan. It will also offer various Japan-related financial products and services to overseas customers.

According to the memorandum of understanding between Mitsubishi UFJ Securities Co., Ltd. and Morgan Stanley Japan Securities Co., Ltd. concerning their integration, the ownership of the resulting company will be 60 percent for the former and 40 percent for the latter, and each will have proportional voting rights.

Their current subsidiaries and affiliates will not, in principle, be included in the integration.

Morgan Stanley will designate the Chairman and the Deputy President and CEO of Institutional Securities, while MUFG will designate the President and CEO, Deputy President and CEO of Retail/Middle Markets, and the Deputy Head of Institutional Securities.

Other directors will also be designated by MUFG and MS in proportion to their voting rights. The name of the new company will be determined at a future date. MUFG and Morgan Stanley will work to conclude definitive agreements for the integration in the coming months with a targeted closing date prior to the end of March 2010. The integration will be subject to regulatory approval.

In addition to this integration of the securities companies in Japan, MUFG and Morgan Stanley are discussing specific initiatives in other business areas to maximise the strategic benefits of the global alliance, which the companies intend to announce in due course.