SMB Financial Group Boosts Stake in Jefferies with $912 Million Investment

Sumitomo Mitsui Financial Group has increased its stake in Jefferies to up to 20% with a $912 million investment. The move is part of a broader strategy to expand its presence in the US financial services market. As a Japan-based financial services company, Sumitomo Mitsui aims to leverage Jefferies' expertise in investment banking and asset management to drive growth. The partnership is expected to enhance Sumitomo Mitsui's capabilities in these areas and position it for long-term success.

Sumitomo Mitsui Financial Group (SMFG) has significantly increased its stake in Jefferies Group Inc. to up to 20% through open market purchases. This move is part of a broader strategy by SMFG to expand its presence in the US financial services market Sumitomo Mitsui to boost Jefferies stake to 20% in expanded alliance^[1].

The investment, valued at approximately $912 million, will see SMFG's economic ownership in Jefferies rise, but it will maintain less than 5% voting interest in the company. In addition to the equity purchase, SMFG has agreed to extend approximately $2.5 billion in credit facilities to Jefferies, further strengthening their financial relationship Sumitomo Mitsui to boost Jefferies stake to 20% in expanded alliance^[1].

The partnership also includes plans to establish a joint venture focused on equity business in Japan. This new venture is scheduled to begin operations in January 2027, aiming to leverage the expertise of both companies in their respective markets Sumitomo Mitsui to boost Jefferies stake to 20% in expanded alliance^[1].

This expanded alliance represents a significant deepening of ties between the Japanese banking giant and the American financial services company. By tapping into Jefferies' expertise in investment banking and asset management, SMFG aims to drive growth and position itself for long-term success in the US financial services market Sumitomo Mitsui to boost Jefferies stake to 20% in expanded alliance^[1].