Tokyo – LAWFUEL – The Law News Network – Clifford Chance’s Tokyo office* has advised The Bank of Tokyo-Mitsubishi, Ltd. (“BTM”) on the establishment of its 50:50 private banking joint venture in Japan among BTM, Mitsubishi Tokyo Financial Group, Inc., Mitsubishi Securities Co., Ltd. (collectively “MTFG”), Merrill Lynch & Co., Inc and Merrill Lynch Japan Securities Co., Ltd. (“Merrill Lynch”).
The new entity, to be headquartered in Tokyo, will cater to high net worth individuals and small and midsize institutions in Japan. The joint venture is expected to commence operations in the first half of 2006. It will bring together the national reach and in-depth knowledge of MTFG, Japan’s leading banking group, and the global resources and wealth management experience of Merrill Lynch.
The joint venture will be capitalized at JPY10 billion, JPY6 billion of which will be in the form of common stock with voting rights. Merrill Lynch will have a 50 percent interest in the venture, while BTM and Mitsubishi Securities Co., Ltd. will have 40 percent and 10 percent ownership, respectively.
The Clifford Chance corporate team was led by partner Atsushi Yamashita, and supported by Counsel Angela Krantz and associates Tatsuhiko Kamiyama, Tsuguhito Omagari and Yusuke Abe (all Tokyo).
Mr. Yamashita commented:
“The demand for wealth management strategies is growing notably in Japan, due in part to an improving investment climate as well as a surging retirees’ population. We were delighted to be instructed by BTM on this landmark joint venture and were able to provide the seamless combination of domestic and international law capability that our client required.”