• Kyodo

  • SHARE

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.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW

PHOTO GALLERY (CLICK TO ENLARGE)