With a transaction value of approximately US$30bn and the prospect of forming the world's largest banking group with assets of approximately US$1.7tn, the proposed merger of Mitsubishi Tokyo Financial Group with UFJ Holdings has caused quite a commotion in the Tokyo legal market.

US firm Cleary Gottlieb Steen & Hamilton is the first firm to announce its role on this most prestigious of mandates - with Tokyo-based partners Tsunemasa Terai and Steven L Wilner leading its team representing Morgan Stanley, Lazard, Frères & Co. and Nomura Securities as financial advisers to Mitsubishi Tokyo.

Mitsubishi Tokyo and UFJ agreed last year to merge their operations by October 2005. Domestic rival Sumitomo Mitsui Financial Group is challenging the deal although management at Mitsubishi Tokyo and UFJ have repeatedly said it will go ahead. After the merger the bank will be known as Mitsubishi UFJ Financial Group - or MUFG.
 
Mitsubishi Tokyo and UFJ shareholders will be asked to approve the merger proposal at a meeting in June.