Sources familiar with the matter were quoted by Bloomberg as saying that the Japanese lender’s San Francisco- based unit UnionBanCal Corp will acquire the business, which offers trust services for $4bn of client assets.
Terms of the transaction have not been disclosed, although the deal is pending receipt of concerned regulatory approvals including US regulatory approval.
In a bid to reduce operational cost and boost shareholders returns, the New York-based bank’s CEO James Gorman visited Tokyo to finalize the deal with Mitsubishi UFJ management.
Operating as a part of Morgan Stanley Private Bank, the trust business delivers fiduciary and administrative services for wealthy clients who seek to establish personal trusts.
If the proposed transaction translates into reality, the acquired enterprise will continue to be managed by Morgan Stanley advisers; the news agency reported citing one of the sources.
Presently, Morgan Stanley provides its trust clients services from its own unit or from Comerica, Royal Bank of Canada, or Advisory Trust Co of Delaware, one of the sources added.
