Morgan Stanley has received all regulatory approvals to acquire the remaining 35% interest in Morgan Stanley Smith Barney Holdings (MSSBH) from Citigroup, fulfilling a key strategic priority.
Upon the close of the purchase, Morgan Stanley will own 100% of the business, which operates under the name Morgan Stanley Wealth Management.
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Morgan Stanley said it will notify Citigroup that it intends to exercise its right to purchase the remaining interest at a previously established price of US$4.7 billion, payable in cash.
The closing is expected to take place on or about 28 June 2013. Morgan
In a statement, Morgan Stanley said will record a negative adjustment to capital of approximately US$200 million (net of tax) to reflect the difference between the purchase price for the 35% redeemable non-controlling interest in MSSBH (US$4.725 billion) and its carrying value.
James Gorman, chairman and CEO of Morgan Stanley, said: "Immediately upon closing, we expect to start seeing the benefits of 100 percent ownership – including an expanded deposit base, unique syndication and distribution capabilities and enhanced opportunities for both our wealth management and institutional clients."
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