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Thu, Jul 02, 2009 - Page 10 News List

Morgan Stanley, MUFJ to set up venture

AP , TOKYO

Mitsubishi UFJ (MUFJ), Japan’s largest bank, and Morgan Stanley said yesterday they would form a joint venture to pursue corporate financing business in the US, Canada and Latin America.

Mitsubishi UFJ is eager to expand its reach overseas and took a major step late last year, when it paid US$9 billion for a 21 percent stake in Morgan Stanley. The deal was a lifeline for the US bank, which was on the brink of collapse owing to the unfolding financial crisis.

The companies said in March they would merge their Japanese brokerage units into a new securities company.

The joint venture announced yesterday — Morgan Stanley MUFG Loan Partners — will be capitalized at US$500,000, the companies said in a press release.

They also announced a deal in which MUFJ subsidiary, Bank of Tokyo-Mitsubishi UFJ, would refer commodities business to Morgan Stanley.

In a separate agreement, MUFG employees will be sent to Morgan Stanley to “maximize the benefits of the strategic alliance.”

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