• Kyodo


Sumitomo Mitsui Financial Group Inc. said Wednesday it has reached a business and capital tie-up with Jefferies Financial Group Inc. and plans to purchase a stake of up to 4.9% in the U.S. group for around ¥42 billion ($380 million).

The partnership is expected to enable the Japanese financial group to bolster its securities business in the United States.

Established in 1962, New York-based Jefferies operates businesses ranging from investment banking to equities. It has been focusing on advisory services for corporate clients.

Jefferies reported a net profit of $770 million in the year to November 2020. SMFG, which has Japanese megabank Sumitomo Mitsui Banking Corp. under its wing, logged a net profit of ¥512.81 billion in the year through March.

SMFG has been expanding its overseas business. The group said in early July that it will acquire a 74.9% stake in nonbanking financial firm Fullerton India Credit Co. for about $2 billion, with an eye to eventually making it a wholly owned subsidiary.

It has also agreed to take a 4.99% stake in Rizal Commercial Banking Corp. of the Philippines for about ¥10 billion.

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