Jefferies and SMBC Form Japan Joint Venture as SMBC Raises Stake to Nearly 20%

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Jefferies Financial Group is expanding its partnership with Sumitomo Mitsui Banking Corporation through a Japan-based joint venture expected to begin serving clients in January 2027, while SMBC has increased its equity ownership in Jefferies to almost 20%, making it the company's largest shareholder. The venture will combine SMBC and SMBC Nikko's domestic client coverage, equities, Equity Capital Markets, research and corporate access capabilities with Jefferies' global client network, sector expertise, trading technology and capital-markets capabilities, with the shared goal of building a leading institutional Japanese equities and ECM franchise. The partners will also jointly source and execute Japan-related cross-border mergers and acquisitions and ECM transactions. Jefferies said joint coverage of selected large sponsor clients began in 2024, and its M&A and ECM market share for those jointly covered clients increased more than fourfold, with the partners now expanding joint coverage to larger sponsors globally. Management expects the Japan joint venture to provide a template for other ways Jefferies and SMBC can work together globally, though the venture is not expected to launch until January 2027.

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Sumitomo Mitsui Financial Group, Inc.
8316
▲ PositiveCapitalrelevance

SMBC increased its equity ownership in Jefferies to almost 20% and formed a Japan joint venture combining its domestic coverage with Jefferies' global network.

Jefferies Financial Group Inc
JEF
▲ PositiveCapitalrelevance

SMBC raised its stake in Jefferies to nearly 20%, making it the largest shareholder, and formed a Japan joint venture expanding its capital-markets and M&A franchise.

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