MSSB, a wealth management joint venture (JV) between Morgan Stanley and Citigroup, was set up to tap the wealth management opportunities in the country.
Following completion of the transaction, which is likely to conclude on or nearly 28 June 2013, Morgan Stanley will own 100% of the business, which operates under the name of Morgan Stanley Wealth Management.
In September 2012, both parties embarked on an agreement to purchase Citi’s remaining 35% stake in MSSB, inclusive of related deposits of nearly $48bn, no later than 1 June 2015.
Morgan Stanley will pay $4.7bn in cash for the stake, as the entire 100% stake of MSSBH has been valued at nearly $13.5bn.
Commenting on the deal, Morgan Stanley chairman and CEO James P Gorman said it is the culmination of a multi-year effort to transform its business model into one that offers stronger shareholder returns and greater stability in volatile markets.
Morgan Stanley offers a range of investment banking, securities, investment management and wealth management services and trades in 43 geographies across the globe.
Serving nearly 200 million customer accounts, Citi operates an array of businesses in more than 160 nations and jurisdictions and offers various kinds of financial products and services to consumers, corporations, governments and institutions.
