Japan's Sumitomo Mitsui to buy 5% of Jefferies for $380M - report
The move is part of SMFG's effort to strengthen its securities business in the United States
Sumitomo Mitsui Financial Group Inc, Japan's second-largest lender by assets, plans to buy 5% of Jefferies Financial Group Inc shares for around 42 billion yen ($380.19 million), the Nikkei reported on Wednesday.
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The move is part of SMFG's effort to strengthen its securities business in the United States to tap strong demand for M&A deals and financing, Nikkei said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JEF | JEFFERIES FINANCIAL GROUP INC. | 76.77 | +1.86 | +2.48% |
SMFG, in a statement, confirmed that it is considering the capital tie-up with Jefferies and would make an announcement when the two companies agreed to a deal.
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Japanese banks have been seeking business opportunities abroad as the country faces an aging and shrinking population.
Earlier this month, SMFG announced its plans to buy a 74.9% stake in Fullerton India for $2 billion, the first major foray by a Japanese bank into India during recent times.
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($1 = 110.4700 yen)
(Reporting by Tokyo Newsroom; Editing by Christopher Cushing and Shailesh Kuber)