Mitsubishi UFJ Financial Group Inc. said Sept. 12 that it expects the planned merger of its two units, Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. and Mitsubishi UFJ Morgan Stanley PB Securities Co. Ltd., to come into effect June 1, 2020.
The two units entered into an agreement for the merger, which involves unit MUFG Bank Ltd. transferring its 25% stake in Mitsubishi UFJ Morgan Stanley PB Securities to Mitsubishi UFJ Morgan Stanley Securities, tentatively on Oct. 25. Currently, Mitsubishi UFJ Morgan Stanley Securities holds a 75% stake in Mitsubishi UFJ Morgan Stanley PB Securities.
Following the share transfer, Mitsubishi UFJ Morgan Stanley PB Securities will become a wholly owned subsidiary of Mitsubishi UFJ Morgan Stanley Securities. When the merges takes effect, Mitsubishi UFJ Morgan Stanley Securities will absorb Mitsubishi UFJ Morgan Stanley PB Securities, with the former as the surviving entity.
On the date the merger takes effect, Mitsubishi UFJ Morgan Stanley Securities will establish a new wealth management division to take over the offices of Mitsubishi UFJ Morgan Stanley PB Securities.
The merger is part of the Japanese financial group's efforts to strengthen its wealth management business.
