Sumitomo Mitsui to Increase Investment in U.S. Associate Jefferies Financial Group
Sumitomo Mitsui and Jefferies Financial Group to Establish Joint Venture in Japan
In a significant move for the financial sector, Sumitomo Mitsui Financial Group Inc. and Jefferies Financial Group Inc. have announced plans to establish a joint venture in Japan. The joint company, SMBC Nikko Jefferies Securities Inc., is scheduled to commence operations in January 2027.
The joint venture will focus on integrating the wholesale Japanese equities operations of both groups, aiming to improve Sumitomo Mitsui's operations in the equities market. SMBC Nikko Securities Inc., a wholly-owned subsidiary of Sumitomo Mitsui, will hold a majority stake in the new firm.
Sumitomo Mitsui has announced an additional investment of 135 billion yen in Jefferies Financial Group Inc., which will increase its equity stake from the current 14.5% to up to 20%. This move is aimed at enhancing Sumitomo Mitsui's capabilities for large-scale global deals, boosting its competitiveness both domestically and internationally.
Approximately 400 to 500 employees from SMBC Nikko Securities will be transferred to the new firm. The joint venture will be based in Japan.
The announcement regarding this investment and joint venture was made by Sumitomo Mitsui on Friday. The search results do not provide the name of the founder or the CEO of SMBC Nikko Jefferies Securities Inc., the joint venture starting in January 2027 in Japan. The information available focuses on the formation and strategic purpose of the joint venture between Sumitomo Mitsui and Jefferies but does not mention specific leadership names.
The joint company is expected to provide a significant boost to both parties, leveraging the strengths of each to deliver improved services and greater efficiency in the Japanese equities market. The exact details of the joint venture's operations and strategies will be revealed in due course.
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