Mitsubishi UFJ Financial Group Inc. (8306.TO) said Monday that it will acquire $600 million Morgan Stanley (MS) common shares, bringing its stake in the U.S. investment bank to over 20%.

The Japanese bank said it will pay $24 per share and buy 25 million shares on May 13.

However, because Morgan Stanley will redeem around Y60 billion of nonconvertible preferred shares under the transaction, MUFG will not pay additional cash for the purchase.

The move comes after Morgan Stanley said last week it would sell $2 billion in stock after the Federal Reserve told the bank it needed to add $1.8 billion in common equity.

-Tokyo Bureau; Dow Jones Newswires; 813-6895-7550