Morgan Stanley will not fully integrate its Japanese operations with Mitsubishi UFJ Securities as originally planned in a deal agreed last year with MUFG, Japan’s biggest bank confirmed on Wednesday. Instead there will be two entities, over which MUFG will retain a 60% stake. One will include MUFJ Securities’ businesses and Morgan Stanley’s Japan investment banking business. The other, in which the US bank will have 51% voting rights, will comprise Morgan Stanley’s Japanese sales, trading and underwriting business. The merger date has been set back from March to May next year. See more detail on FT Alphaville.