SMBC and Jefferies expand strategic alliance into EMEA

Jefferies Financial Group and Sumitomo Mitsui Financial Group have signed a memorandum of understanding to further expand their global strategic alliance to now include enhanced collaboration across Europe, the Middle East and Africa (“EMEA”) on future corporate and investment banking business opportunities.

In support of the initial strategic alliance in 2021, SMBC provided $2.25 billion in financing to Jefferies and purchased approximately 4.5% of the issued and outstanding common shares of Jefferies. In April 2023 the alliance was further bolstered by SMBC announcing its intention to raise its economic ownership to up to 15% on an as converted and fully diluted basis, which if effected would result in SMBC becoming one of Jefferies’ most significant shareholders.

The Jefferies-SMBC strategic alliance commenced in 2021 in the U.S. and Japan and was significantly expanded in the U.S. in 2023, broadening the scope of collaboration in 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. The alliance has now been further extended to formally cover EMEA in these business areas. Jefferies and SMBC have already been collaborating to deliver client solutions for over two years and this latest step enhances the alliance across EMEA. 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.

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