Mitsubishi UFJ Financial Group Inc. and Morgan Stanley will merge some operations at their Japan-based joint ventures, in the first major reorganization since the two entities were formed more than a decade ago.

The companies will integrate Japan equity sales for institutional clients, along with corporate access, research and a part of execution services, MUFG and Morgan Stanley said in a statement on Tuesday. The banks also agreed to collaborate on foreign exchange trading. They plan to implement the changes in the first half of 2024, subject to regulatory approval.

Japan’s largest lender invested $9 billion in the Wall Street bank at the height of the financial crisis in 2008, acquiring a 20% stake. Following the alliance, they set up two securities joint ventures in Japan in 2010.

Morgan Stanley MUFG Securities Co. is 51% owned by the US bank, while Mitsubishi UFJ Morgan Stanley Securities Co. is 60% owned by the Japanese lender. The ventures were designed to serve different purposes but have some overlapping functions.

Author: Takashi Nakamichi, Nao Sano and Taiga Uranaka