DOW JONES NEWSWIRES
Morgan Stanley (MS) and Mitsubishi UFJ Financial Group Inc. (MTU) announced late Tuesday a loan-marketing venture in the Americas as the financial giants look to expand the scope of their previous alliance.
Last fall, Mitsubishi made a $9 billion investment in Morgan Stanley as the U.S. brokerage worked to stay afloat amid the financial crisis. The latest partnershup follows a memorandum of understanding to create a separate venture to combine both MUFG's and Morgan Stanley's securities businesses in Japan.
The companies said they will combine to form Morgan Stanley MUFG Loan Partners, which would constitute one of the largest lenders to U.S. corporations, with total loan commitments of more than $100 billion.
They also signed a referral agreement for commodities transactions outside of Japan. Under that deal, Mitsubishi will be able to refer clients to Morgan Stanley for commodity transactions and receive referral fees upon completion.
"Looking ahead, the newly formed loan marketing JV provides our clients with even stronger financing capabilities, and the commodities referral agreement gives MUFG's clients access to an industry-leading commodities platform, " Morgan Stanley Chief Executive John Mack said.
In after-hours trading, Morgan Stanley shares rose 5 cents to $28.56. The stock is up 78% so far this year through Tuesday's close.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356; lauren.pollock@dowjones.com