Jefferies Financial Group, Inc. and Sumitomo Mitsui Financial Group, Inc., Sumitomo Mitsui Banking Corporation, SMBC Nikko Securities Inc. and SMBC Nikko Securities America Inc. (collectively, “SMBC Group”) announced that they have expanded their strategic alliance to collaborate on future corporate and investment banking business opportunities, as well as in equity sales, trading, and research.
Over the past year, the Jefferies and SMBC Group’s strategic alliance has advanced the corporate and investment banking businesses of both firms, with a focus on cross-border M&A, healthcare and leveraged finance. This significant expansion of the alliance will broaden the scope of the collaboration in M&A advisory services and increase the collaboration across the firms’ equities and debt capital markets businesses.
In addition, the expanded agreement includes joint coverage of selected investment grade clients who have banking ties with SMBC and will now get dedicated Jefferies investment banking coverage. SMBC Group will be in charge of credit products and debt capital markets, while Jefferies will be in charge of mergers and acquisitions and equity capital markets.
SMBC Group and Jefferies are bold enough that these initiatives will not only grow and bolster the companies' relationship but will also improve each firm's ability to meet the needs of its clients. Jefferies and SMBC Group have taken care to put in place the necessary collaborative framework and governance oversight so that they can work as one team to deliver their combined resources to clients.
The goal of this critical next step in the firms' collaboration is to better coordinate Jefferies' extensive sector and capital markets knowledge with SMBC Group's deep banking and debt capital markets expertise, as well as a strong balance sheet, to better support and serve clients.