Morgan Stanley gets OK to buy remaining jv stake

Last Updated: Fri, Jun 21, 2013 14:30 hrs

Morgan Stanley is getting regulatory approval to buy the 35 percent stake of a joint venture with Citigroup that it doesn't already own for $4.7 billion.

The bank said Friday that gaining full ownership of Morgan Stanley Smith Barney Holdings LLC, which operates under the name Morgan Stanley Wealth Management, is one of its key strategic priorities.

Morgan Stanley's Wealth Management Group and Citigroup Inc.'s Smith Barney merged in 2009 during the recession.

Morgan Stanley Chairman and CEO James Gorman says full ownership will help expand its deposit base and offer unique syndication and distribution capabilities.

The deal' is expected to close on June 28.

Shares of Morgan Stanley slid nearly 3 percent, or 66 cents, to $24.49 in early trading.

More from Sify: