Jefferies Financial Group, Inc. (Nyse: Jef) and Sumitomo Mitsui Financial Group, Inc. (NYSE: SMFG), Sumitomo Mitsui Banking Corporation (SMBC) and SMBC Nikko Securities Inc.
The SMBC Group and Jefferies initially entered into a strategic alliance in 2021 to work together for future corporate and investment banks. In 2023, the Alliance was expanded to enhance cooperation between mergers and stock markets and debt capital, with particular emphasis on investment clients in the US SMBC Group and Jefferies, then Memorandums were added to expand the corporate companies, Australia.
Today, Jefferies and SMBC Group announces the next important steps in their global strategic alliance that will further utilize their unique business benefits and enhance their capabilities to meet the global needs of borrowing, investment, corporate and sponsors.
This will include the combination of Japanese shares and ECM businesses, the extension of the common coverage of the largest sponsors and the implementation of EMEA’s common origin, the foster and execution of trade union loans for new loans to support customers, the SMBC agreeing to increase its 20%, Providing Jefferies and Jefferies about $ the efforts, including lending utilizing EMEA, pre-IPO loans, pre -po and securitization securitization, without prejudice to receiving applicable regulatory approvals.
The SMBC Group and Jefferies have entered into a memorandum of agreement to establish a joint venture in Japan to conduct the main aspects of wholesale Japanese research, sales and trade and capital markets. The Jefferies and SMBC group predicts that the consortium will start serving customers in January 2027.
The new consortium will be incorporated into Jefferies’ leading worldwide business to provide institutional investors and execute all markets around the world on a seamless and consistent basis. With the know -how of SMBC and SMBC Nikko on the domestic market and the balance sheet and the leadership position of Jefferies with world investors and advanced trade technology, the SMBC Group and Jefferies aim to ultimately be the leading provider of wholesale stocks and in the japanese.
The SMBC Group and Jefferies will extend the common coverage of the largest sponsors to offer the investment and corporate banks of both Jefferies and the SMBC Group to such major EMEA customers.
The SMBC intends to increase its financial ownership of Jefferies by up to 20% (on a convertible and fully diluted basis) with the market of shares in the open market and then the exchange of these common shares either for non -vote shares or for non -voting of preferred shares. The SMBC will continue to have less than 5% of the vote for Jefferies. Increased investments are subject to receipt of the required regulatory approvals required.
The SMBC Group has agreed to extend a total of approximately $ 2.5 billion credit facilities to support Jefferies and promoting cooperation in key areas, including structured funding, such as EMEA Aveland Lenting, US pre-IPO loan and securitization. This recently agreed, important funding package of approximately $ 2.5 billion aims to boost our commitment to deepen the partnership, enhance our combined capabilities in these catering areas and allows us to provide excellent services to our customers.
Director Manager and CEO of SMFG, Toru Nakashima commented:
“Our vision is to align the SMBC and Jefferies team to offer our customers the best funding and consulting solutions to meet their needs around the world.
Rich Handler, Managing Director of Jefferies, and President of Brian Friedman, said:
“The SMBC Group and Jefferies together are unique in the power of our combined world platforms.