Sumitomo Mitsui Financial Group (SMFG), through its SMBC Group, and Jefferies Financial Group Inc. announced on September 18, 2025, a significant expansion of their Global Strategic Alliance. This builds upon their initial collaboration in 2021 and subsequent enhancements in 2023.
As part of the expanded alliance, SMBC intends to increase its economic ownership in Jefferies to up to 20% from 15% by purchasing shares in the open market. This increased investment is subject to applicable regulatory approvals and will maintain SMBC's voting interest below 5%.
SMBC Group has also agreed to provide Jefferies with approximately $2.5 billion in new credit facilities. These facilities are designed to support Jefferies and facilitate collaboration efforts in key areas such as EMEA leveraged lending, U.S. pre-IPO lending, and asset-backed securitization.
Furthermore, SMBC Group and Jefferies have entered into a Memorandum of Understanding to establish a joint venture in Japan. This venture will combine their wholesale Japanese equity research, sales and trading, and equity capital markets businesses, with operations anticipated to begin in January 2027.
The alliance will also expand joint coverage of larger sponsors in EMEA, implementing joint origination, underwriting, and execution of syndicated leveraged loans for these clients. This comprehensive expansion aims to enhance their combined capabilities and meet the global needs of their clients.
This significant deepening of the partnership is expected to enhance SMFG's capabilities and market reach in corporate and investment banking globally. The substantial financial commitment and operational integration underscore SMFG's strategic focus on strengthening its international presence and service offerings.
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