) is divesting a section of its global stock plan services (GSPS)
business based in Europe, Middle East and Asia (EMEA) region to
Computershare Limited. The deal is likely to be concluded in the
second quarter of this year.
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The EMEA division of the GSPS business mainly provides employee
stock plan record-keeping and automated trade execution services
to some of the top companies in the United Kingdom and Europe.
These companies are listed on at least 13 exchanges worldwide.
Morgan Stanley will carry on providing trade execution services
to the current GSPS EMEA clientele and their employees.
The divestment is part of Morgan Stanley's efforts to concentrate
solely on the stock plan offerings of the U.S. companies. Morgan
Stanley is looking forward to make considerable investment in the
U.S. business to support its corporate clientele and their
employees across the globe.
Moreover, the GSPS EMEA business and clientele will benefit from
the size and expertise of Computershare - one of the leading
companies in the stock plan services arena.
Concurrent with this development,
reported that London-based
Standard Chartered PLC
) is in talks with Morgan Stanley to buy its India wealth
management unit. In Nov 2012, the company had initiated strategic
review of its Indian private wealth management division. The
review was a part of the company's global strategy to do away
with its underperforming wealth management operations.
Presently, Morgan Stanley is not the only company shedding
non-core operations. Netherlands-based
ING Groep NV
) and British bank
HSBC Holdings Plc.
) are also reshuffling operations by offloading non-core assets.
We believe that Morgan Stanley's strategy to offload the non-core
operations will go a long way in streamlining its operations.
Moreover, the Federal Reserve's new proposed financial
regulations, which require banks to maintain a robust liquidity,
are prompting banks to improve capital positions. Thus, selling
off unprofitable units and focusing on core business is becoming
the need of the hour.
Currently, Morgan Stanley retains a Zacks Rank #3 (Hold).