Morgan Stanley, Mitsubishi UFJ to merge operations

TOKYO: Mitsubishi UFJ Financial Group Inc. says it has reached a final agreement with Morgan Stanley to merge brokerage operations in Japan.

Japan's top bank and the US financial giant said in a joint statement Tuesday that merged securities operations will begin in May. They will set up two joint ventures _ Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. and Morgan Stanley MUFG Securities Co Ltd _ for brokerage operations.

Since Mitsubishi UFJ gave Morgan Stanely a $9 billion lifeline in October 2008 in the wake of Lehman Brothers' collapse, the two companies have been examining ways to propel their alliance forward.