An independent appraiser has set the value of Morgan Stanley Smith Barney at $13.5 billion, setting the stage for Morgan Stanley to buy full control of the retail brokerage giant from its partner in the venture, Citigroup.
The valuation, which was set by the investment bank Perella Weinberg Partners, is a victory for Morgan Stanley, which had previously assessed the value of the enterprise at $9 billion. Citigroup has said that the value of the brokerage was closer to $23 billion.
With the agreement, Morgan Stanley will buy out Citigroup's remaining 14 percent stake.
“This mutually beneficial agreement gives both parties certainty and transparency on price and timing, and is a significant milestone for Morgan Stanley in the implementation of our strategy,†James P. Gorman, Morgan Stanley's chairman and chief executive, said in a statement.
Vikram Pandit, Citigroup's chief executive, said: “As we have shown, the more we put the past behind us, the more we can focus on our future, which is in the core businesses in Citicorp.â€
