New York-based banking giants, Morgan Stanley and Citigroup will have to wait for another two years to get access to each other’s products of their $14 billion-a-year brokerage joint business enterprise – Morgan Stanley Smith Barney. This is mainly due to the difficulties in integrating information technology systems which are causing delay, reported Financial Times.
Go deeper with GlobalData
When the deal was announced, they said in a joint statement that Both Morgan Stanley and Citi will access the joint venture for retail distribution and each firms institutional businesses will continue to execute order flow from the joint venture.
The joint venture, which was originally planned to start in the third quarter, started well ahead of schedule earlier this month to assure brokers and clients, who are worried whether they would fit into the combined unit or not. According to the deal, Morgan Stanley will pay $2.75 billion to Citi, and own 51% in the venture.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
