Morgan Stanley, MUFJ in brokerage tie-up

Morgan Stanley and Mitsubishi UFJ Financial Group Inc will merge their Japanese securities businesses to create the nation's third-largest brokerage.

The companies will put Mitsubishi UFJ Securities Co and Morgan Stanley Japan Securities Co into a new venture by next March, they said in a statement.

Mitsubishi UFJ, Japan's largest bank, will own 60 percent and New York-based Morgan Stanley will hold the rest. Mitsubishi UFJ will appoint the chief executive officer, and Morgan Stanley will name the chairman.