Hogan Lovells advises Morgan Stanley on landmark securities joint venture in Japan
30 August 2010
HONG KONG, 30 August 2010 - Hogan Lovells has advised Morgan Stanley on aspects of its landmark securities joint venture in Japan with Mitsubishi UFJ Financial Group, Inc. ("MUFJ"). The joint venture became operational as of 1 May 2010.
The culmination of a global strategic alliance originally announced on the 13 October 2008, the securities joint venture is one of many areas of collaboration being pursued between Morgan Stanley and MUFJ.
The securities joint venture comprises of two companies. The first company Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. ("MUMSS") encompasses the wholesale and retail businesses of Mitsubishi UFJ Securities Co., Ltd. ("MUS") and the investment banking operations of Morgan Stanley Japan Securities, Co., Ltd. ("MSJS"). The entity will be 60 percent (60%) owned by MUFG and 40 percent (40%) owned by Morgan Stanley.
The second company Morgan Stanley MUFG Securities Co., Ltd ("MSMS") comprises the existing global sales and trading and capital markets businesses of MSJS. Whilst the respective economic interests of MUFG and Morgan Stanley in MSMS will be 60 percent (60%) and 40 percent (40%), MSMS will continue to be under the control of Morgan Stanley, with Morgan Stanley holding a 51 percent (51%) voting interest and MUFG a 49 percent (49%) voting interest.
The two joint venture companies will collaborate in a number of business and product areas, including offering Morgan Stanley's global products and services to retail and middle market customers in Japan.
Hogan Lovells, led by partners Rika Beppu and Philip Hyde, assisted by Senior Associate Jacky Scanlan-Dyas, associate Richard Bleackley and associate James Nepaulsingh, advised Morgan Stanley on various issues relating to the creation of the new joint venture.
Commenting on the joint venture, William Bruinooge, Head of Legal for Japan at Morgan Stanley said: "We were delighted to be supported by Hogan Lovells on this historic transition of our operations in Japan. The team displayed an impressive level of commitment, dedication and expertise in assisting us to navigate various aspects of the joint venture, which was able to commence on schedule. This was in no small part thanks to the considerable efforts of the Hogan Lovells team."
Commenting today, Rika Beppu said, "At Hogan Lovells we are very proud of our close relationship with Morgan Stanley both in Asia and internationally. Being able to support Morgan Stanley on a transaction of this nature is reflective of the depth of that relationship. We look forward to working closely with the joint venture in Japan as it continues to develop."