morgan-stanley-and-citi-form-largest-us-brokerage

Morgan Stanley and Citi form largest US brokerage

The Morgan Stanley Smith Barney joint venture places Morgan Stanley squarely in the driverÆs seat; analysts expect further Citi disposals to follow.
Morgan Stanley and Citi have created a joint venture, Morgan Stanley Smith Barney, which pools Morgan Stanley's global wealth management group and Citi's Smith Barney business, Quilter in the UK, and Smith Barney Australia.

Morgan Stanley will own 51% of the JV, while Citi will own 49%. Morgan Stanley will also control four out of the six board seats and its co-president James Gorman will be chairman.

Morgan Stanley will pay Citi $2.7 billion. In a research update on Morgan Stanley issued after the deal was announced, J.P. Morgan estimates the Morgan Stanley payment places a value of $24.5 billion on the combined entity and suggests this translates into an attractive earnings multiple...
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