Merrill Lynch to team with MUFG for Japanese banking brokerage
US financial services company Merrill Lynch is to form an asset management brokerage with soon to be formed Japanese 'mega-bank' Mitsubishi UFJ Financial Group, according to reports.
According to Japanese business daily Nihon Keizai, Merrill Lynch and Mitsubishi UFJ Financial Group (MUFG) will form the collaborative Japanese asset management brokerage in November, which will then become operational in May of next year. The partnership will draw upon Merrill's asset management expertise, while MUFG will provide access to the massive customer pool which will be generated from its creation out of Japan's second and fourth largest banks. The venture will be capitalized at about Y10 billion with Merrill contributing 70% of the capital, the Nihon Keizai reported. Merrill will put in Y4 billion of preferred shares, while each collaborator will contribute Y3 billion of common stock. Mitsubishi UFJ Financial Group will be officially formed on October 1 by the merger of Mitsubishi Tokyo Financial Group Inc, Japan's second largest bank, and UFJ Holdings, the fourth biggest in the east Asian nation. The combined entity will be one of the largest banking organizations in the world.

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