Jefferies Financial Group, Inc. and Sumitomo Mitsui Financial Group, Inc., along with Sumitomo Mitsui Banking Corporation (SMBC) and affiliated companies, announced today the expansion of their global strategic alliance. The memorandum of understanding signed by the two financial giants outlines plans for enhanced collaboration across Europe, the Middle East, and Africa (EMEA) in the realms of corporate and investment banking.
This strategic partnership originated in 2021, with SMBC providing $2.25 billion in financing to Jefferies and acquiring around 4.5% of Jefferies’ common shares. The alliance was even stronger in April 2023 when SMBC expressed its intention to increase its economic ownership to up to 15%.
The collaboration initially commenced in the United States and Japan in 2021 and expanded significantly in the U.S. in 2023. This expansion broadened the scope of collaboration to include M&A advisory services, increased cooperation in equities and debt capital markets, and introduced a joint coverage model for designated investment-grade clients. The alliance has now been formally extended to cover EMEA, encompassing various business areas.
Jefferies and SMBC Expand Strategic Alliance to EMEA Markets
Jefferies and SMBC have been working together for over two years, delivering client solutions and insights. The extended alliance in EMEA is going to bring additional benefits to clients through the collective global insights and capabilities provided by the comprehensive corporate and investment banking platform offered by both firms.
Rich Handler, CEO of Jefferies, and Brian Friedman, President of Jefferies, expressed their enthusiasm for the rapid success of the alliance and the positive client response following the U.S. expansion in April 2023. They highlighted the natural progression of the collaboration into EMEA and the potential for significant results for clients and shareholders.
Toru Nakashima, President and Group CEO of SMFG, and Akihiro Fukutome, President and CEO of SMBC, also shared their thoughts on the alliance’s success since its inception in 2021. They emphasized the positive impact on SMBC Group’s performance and growth, expressing excitement about the next phase of collaboration in EMEA. The leaders believe that the enhanced strategic alliance with Jefferies represents a substantial investment by SMBC Group, delivering mutual benefits and enhanced value for stakeholders. They also stressed the importance of being a global solutions partner to meet clients’ expectations and affirmed their commitment to fulfilling those expectations through joint arrangements in the U.S., Japan, and now EMEA.
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