Sumitomo Mitsui Plans for Increased Investment in Jefferies Financial, U.S. Alliance
Sumitomo Mitsui Financial Group Inc. and Jefferies Financial Group Inc. have announced a significant investment and joint venture in Japan. The new company, SMBC Nikko Jefferies Securities Inc., will be based in Japan and will focus on enhancing Sumitomo Mitsui's operations in the financial sector, specifically in wholesale Japanese equities.
The joint venture will integrate the wholesale Japanese equities operations of both groups, aiming to boost Sumitomo Mitsui's capabilities for large-scale global deals and increase its competitiveness both domestically and internationally.
Sumitomo Mitsui, through its wholly-owned subsidiary SMBC Nikko Securities Inc., will hold a majority stake in the joint company. The current equity stake of Sumitomo Mitsui in Jefferies is 14.5%, and this will increase to up to 20% as a result of the investment.
Sumitomo Mitsui Financial Group Inc. plans to invest approximately 135 billion yen in Jefferies Financial Group Inc. as part of the joint venture. The move is expected to create a new firm with approximately 400 to 500 employees, with many coming from SMBC Nikko Securities.
The CEO of the new joint venture has not been explicitly named yet, but the existing CEO of SMBC Nikko Securities Inc. is Shuji Yoshioka. The joint venture is scheduled to commence operations in January 2027.
The investment and joint venture are between Japanese and American financial groups, marking a strategic alliance between the two powerhouses in the financial sector. The joint company is expected to focus on improving Sumitomo Mitsui's operations in the financial sector, specifically in wholesale Japanese equities.
The announcement about the investment and joint venture was made by Sumitomo Mitsui on Friday. The move is part of Sumitomo Mitsui's strategy to strengthen its position in the financial sector and compete effectively in the global market.
The joint venture will operate in the financial sector, specifically in wholesale Japanese equities operations. This sector is crucial for both Japanese and global markets, and the joint venture is expected to bring new opportunities and growth for both Sumitomo Mitsui and Jefferies Financial Group Inc.
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