SMBC Group, Jefferies to establish wholesale equities business in Japan

SMBC is also increasing its investment in Jefferies to up to 20%.

Sumitomo Mitsui Financial Group and its subsidiaries have signed a memorandum of understanding with Jefferies Financial Group to establish a joint venture (JV) in Japan for a wholesale equities business.

The JV will encompass equity capital markets (EMC) within investment banking, equity sales and trading, and equity research across global markets, SMBC Group said in a press release.

Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities are also part of the JV.

Separately, SMBC said that it plans to increase its economic investment in Jefferies to up to 20% on a converted and fully diluted basis.

SMBC said that it will continue to own less than 5% voting interest in Jefferies even after the increased investment.

The group and Jefferies first entered into a strategic alliance in 2021 to collaborate on future corporate and investment banking business opportunities.