(Reuters) - Morgan Stanley said it has received regulatory approval to buy the remaining 35 percent stake in its joint wealth management business Morgan Stanley Smith Barney Holdings LLC from Citigroup Inc.

Morgan Stanley said it will notify Citigroup that it intends to exercise its right to purchase the remaining interest at a previously established price of $4.7 billion.

Morgan Stanley Wealth Management, is majority-owned by Morgan Stanley and was formed by the merger of Morgan Stanley's wealth management unit and Citigroup's Smith Barney business in 2009. It is the largest U.S. brokerage by adviser headcount and client assets.

The closing is expected to take place on or about June 28.

(Reporting by Tanya Agrawal in Bangalore; Editing by Joyjeet Das)