Japan: Amid turmoil, Morgan Stanley gains local clout
Daiwa, Nikko split from commercial partners; Kirin/Suntory shows corporate Japan’s pragmatism
From left to right: Morgan Stanley Japan Securities president Jonathan Kindred, Morgan Stanley co-president Walid Chammah, MUFG president and CEO Nobuo Kuroyanagi and Mitsubishi UFJ Financial Securities president Fumiyuki Akikusa shake hands in Tokyo on March 26
19 November 2009
Morgan Stanley’s new tie-up with Mitsubishi UFJ Securities has begun to bear fruit for the US bank, amid yet another period of turmoil for Japan’s local investment banking franchises.
The joint venture gives Morgan Stanley access to clients of Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking conglomerate and the owner of the similarly named subsidiary with which Morgan Stanley has partnered. Bankers at rival firms in Tokyo are forced to admit that they are already feeling the effects of Morgan Stanley’s new clout with local clients.
The US investment bank is advising beverage maker Kirin on its proposed merger with smaller privately owned Suntory, and for one capital markets banker at a rival US institution this is merely a sign of more to come.
"I have to concede that despite criticisms at the time, the Morgan Stanley-Mitsubishi deal looks pretty brilliant now," he says.