{"id":26168,"date":"2023-04-27T16:08:39","date_gmt":"2023-04-27T16:08:39","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/japans-smfg-boosts-u-s\/"},"modified":"2023-04-27T16:14:48","modified_gmt":"2023-04-27T16:14:48","slug":"jefferies-gets-boost-as","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/jefferies-gets-boost-as\/","title":{"rendered":"Jefferies gets boost as Japan’s SMFG expands partnership, investment"},"content":{"rendered":"

By Jaiveer Shekhawat and Lananh Nguyen<\/p>\n

(Reuters) -Jefferies Financial Group Inc shares surged more than 5% on Thursday after Japan’s Sumitomo Mitsui Banking Corp (SMBC) said it will combine its U.S. equity and M&A business with the U.S. investment bank. <\/p>\n

As part of a deal, SMBC’s parent, Sumitomo Mitsui Financial Group, will expand its U.S. presence and boost its stake in Jefferies from 4.5% to as much as 15%, the companies said in a joint statement Thursday.<\/p>\n

“This will give us access to more, and larger, public companies,” Jefferies President Brian Friedman told Reuters. “This is hugely strategic and deeply long-term.”<\/p>\n

The deal gives SMFG the right to nominate a member of Jefferies’ board of directors. It expands collaboration between SMBC and Jefferies, which have worked together on cross-border mergers and acquisitions, healthcare and leveraged finance since 2021.<\/p>\n

The transaction will enable Jefferies to offer more lending capabilities, with the help of SMFG’s balance sheet, alongside its traditional advisory work. <\/p>\n

SMFG has long been eager to crack the U.S. and other major overseas capital markets. Its SMBC Nikko Securities unit, formerly Citigroup Inc’s Japanese broker and a key investment banking unit that SMFG bought in 2009, has a limited footprint abroad.<\/p>\n

SMFG’s bigger domestic rival, Mitsubishi UFJ Financial Group Inc, has boosted its U.S. presence through a $9 billion investment in Morgan Stanley in 2008, which gave MUFG some 20% ownership of the Wall Street bank.<\/p>\n

The Financial Times first reported the news on SMBC and Jefferies.<\/p>\n

(Reporting by Lananh Nguyen in New York, Kanjyik Ghosh and Jaiveer Shekhawat in Bengaluru and Makiko Yamazaki in Tokyo; Editing by Savio D’Souza and Josie Kao)<\/p>\n

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By Jaiveer Shekhawat and Lananh Nguyen (Reuters) -Jefferies Financial Group Inc shares surged more than 5% on Thursday after Japan’s Sumitomo Mitsui Banking Corp (SMBC) said it will combine its U.S. equity and M&A business with the U.S. investment bank. As part of a deal, SMBC’s parent, Sumitomo Mitsui Financial Group, will expand its U.S. […]<\/p>\n","protected":false},"author":8,"featured_media":26169,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-26168","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3Q0JO-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/26168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=26168"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/26168\/revisions"}],"predecessor-version":[{"id":26528,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/26168\/revisions\/26528"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/26169"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=26168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=26168"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=26168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}