SMFG plans to invest 135 billion yen to raise Jefferies stake to 20%

SMFG plans to invest 135 billion yen to raise Jefferies stake to 20%

Sumitomo Mitsui Financial Group (SMFG) has announced plans to invest approximately 135 billion yen to increase its stake in Jefferies Financial Group to around 20%. The move, which comes amidst ongoing discussions between the two firms, aims to solidify their strategic partnership and bolster Jefferies' financial capabilities .

The investment, which totals roughly $2.5 billion, will be facilitated through new credit facilities agreed upon by SMFG and Jefferies. This agreement underscores the firms' commitment to strengthening their collaborative efforts in various financial services, including investment banking, asset management, and trading .

SMFG's decision to raise its stake in Jefferies is part of a broader strategy to enhance its presence in the global financial market. The Japanese financial giant has been actively exploring opportunities to expand its influence, as evidenced by its recent acquisition of a 20% stake in India's YES BANK, with plans to increase its holding to 4.2% .

The latest development is part of a series of strategic moves by SMFG to diversify its portfolio and strengthen its market position. The company's focus on increasing its stake in Jefferies aligns with its broader objectives of expanding its footprint in the international financial landscape.