SMBC, Jefferies expand investment banking collaboration to EMEA

In 2023, SMBC had raised its ownership of Jefferies to 15%.

Sumitomo Mitsui Financial Group (SMFG) and Jefferies Financial Group have inked a memorandum of understanding to expand their alliance to Europe, the Middle East and Africa (EMEA) on future corporate and investment banking business opportunities.

During their initial strategic alliance, inked in 2021, SMBC provided $2.25b in financing in Jefferies and purchased 4.5% of issued and outstanding common shares in the financial group. This alliance first commenced in the US and Japan.

In 2023, the US collaboration broadened its scope to include M&A advisory services, increasing collaboration across the firms’ equities and debt capital markets businesses, and launching a joint coverage model for designated investment grade clients. 

SMBC also raised its economic ownership in Jefferies to 15% in 2023.

The extended arrangement will benefit clients through the collective global insights and capabilities delivered from the comprehensive corporate and investment banking product and advisory platform offered by the two firms, SMBC and Jefferies said in a joint statement.