Merger deal not to affect Citi Mideast operations

Dubai: Morgan Stanley and Citi on Wednesday announced they have reached an agreement to merge Morgan Stanley's Global Wealth Management Group and Citi's Smith Barney, Quilter in the UK, and Smith Barney Australia into a joint venture to be called Morgan Stanley Smith Barney.

The joint venture will not include Citi Private Bank or Nikko Cordial Securities.

Reacting to the merger deal, a Citi source told Gulf News that it will not have any impact on Citi's operations in the region.

"Smith Barney does not have a presence in the region and is not likely to have any impact on Citi's staff in the region. However, we will continue to give our private banking clients access to Smith Barney products through the new entity."

Morgan Stanley officials were not available for comments.

Under the deal, Citi will exchange 100 per cent of its Smith Barney, Smith Barney Australia and Quilter units for a 49 per cent stake in the joint venture and an upfront cash payment of $2.7 billion.