Jefferies shares jumped 5% on Wall Street after Sumitomo Mitsui Financial Group agreed to triple its stake in the US investment bank and expand the alliance to other business areas.
The Japanese bank, which bought 4.5% of Jefferies’ outstanding shares in 2021, plans to increase that investment to 15%. The goal is to collaborate on new opportunities in corporate finance and investment banking, as well as in equity sales, trading and research.
This transaction “will allow us to compete even more effectively against the large banks that we consider our main global competitors and make us a stronger partner for large publicly traded companies,” said Jefferies chairman Brian Friedman in a statement. ‘interview. “There is virtually no overlap in skills or customer focus. This agreement is complementary to both parties.”
Tokyo-based group SMBC (Sumitomo Mitsui Banking Corporation) will handle credit products and debt markets, while Jefferies will handle mergers and acquisitions and equity capital markets.