Jefferies Financial Group Inc. (NYSE: JEF) (“Jefferies”) and
SMBC Group announced today that they have expanded their global
strategic alliance to enhance collaboration on future corporate and
investment banking business opportunities within the Canadian
market. SMBC Group comprises Sumitomo Mitsui Financial Group, Inc.
(NYSE: SMFG) (“SMFG”), Sumitomo Mitsui Banking Corporation
(“SMBC”), SMBC Nikko Securities America, Inc., SMBC Nikko
Securities Canada, Ltd., and other group companies.
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In December 2023, Jefferies announced that it established
full-service investment banking and capital markets capabilities in
Canada, opening a new 40+ person office with dedicated expertise
across investment banking, equity research, and sales and trading
in all sectors. Jefferies will now align its extensive industry,
M&A, leveraged finance and equity capital markets knowledge in
Canada with SMBC Group’s deep banking and debt capital markets
expertise and strong balance sheet to support and serve
clients.
The SMBC-Jefferies strategic alliance commenced in 2021, focused
on U.S. leveraged finance and Japan cross-border M&A. In 2023,
it was significantly expanded in the U.S. to broaden the scope of
collaboration in M&A advisory services, increase collaboration
across the firms’ equities and debt capital markets businesses, and
launch a joint coverage model for designated investment grade
clients. In January 2024, the alliance was further extended to
cover Europe, the Middle East and Africa (EMEA).
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 outstanding common shares of Jefferies.
In April 2023, the alliance was further bolstered when SMBC
announced plans to raise its economic ownership to up to 15% on an
as-converted and fully diluted basis, which would result in SMBC
becoming Jefferies’ largest shareholder.
Bruce Rothney, CEO of Jefferies Canada, stated: “In just
the first few months since opening Jefferies’ new Canada office, we
have already witnessed the benefits that the Jefferies-SMBC
strategic alliance will bring to our valued clients. SMBC’s capital
base and world-class capabilities will enable us to jointly offer
comprehensive, full-service solutions to our clients in Canada. We
are excited by the opportunity to accelerate efforts with our
partners at SMBC as we pursue our mission of establishing Jefferies
as a leading full-service global investment banking and capital
markets firm in Canada.”
Takeshi Okamoto, General Manager of SMBC Canada,
commented: “Adding another region to SMBC’s strategic alliance with
Jefferies builds on our initial success as global partners. We look
forward to better serving our Canadian clients through the combined
power of Jefferies’ and SMBC’s strengths in global investment
banking and corporate banking, and are eager to continue expanding
our alliance.”
About Jefferies Financial Group Inc.
Jefferies is a leading, global, full-service investment banking
and capital markets firm. With more than 40 offices in 20 countries
around the world, we offer insights and expertise to investors,
companies and governments.
About Sumitomo Mitsui Financial Group, Inc.
SMFG is one of the largest financial institutions headquartered
in Japan, with an established presence across all consumer and
corporate banking businesses. Through the subsidiaries and
affiliates, SMFG offers a diverse range of financial services,
including commercial banking, leasing, securities, credit card,
consumer finance and other services.
About Sumitomo Mitsui Banking Corporation
SMBC is the commercial banking subsidiary of SMFG and one of the
largest banks globally on the basis of total assets. It provides an
extensive range of corporate and consumer banking services in Japan
and globally.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include statements about our future and statements that
are not historical facts. These forward‐looking statements are
typically identified by such words as “believe,” “expect,”
“anticipate,” “may,” “intend,” “outlook,” “will,” “estimate,”
“forecast,” “project,” “should,” and other similar words and
expressions, and are subject to numerous assumptions, risks, and
uncertainties, which will change over time. Forward-looking
statements may contain beliefs, goals, intentions and expectations
regarding revenues, earnings, operations, arrangements and other
results, and may include statements of future performance, plans,
and objectives. Forward-looking statements also include statements
pertaining to our strategies for future development of our
businesses and products, including Jefferies and SMBC Group’s
strategic alliance. In particular, forward-looking statements
include statements about the potential benefits of the
collaboration with SMBC Group and SMBC’s intention to increase its
equity investment in Jefferies, as SMBC is under no obligation to
do so. Forward‐looking statements speak only as of the date they
are made; we do not assume any duty, and do not undertake, to
update any forward‐looking statements. Furthermore, because
forward‐looking statements represent only our belief regarding
future events, many of which by their nature are inherently
uncertain, the actual results or outcomes may differ, possibly
materially, from the anticipated results or outcomes indicated in
these forward-looking statements. Information regarding important
factors, including Risk Factors that could cause actual results or
outcomes to differ, perhaps materially, from those in our
forward-looking statements is contained in reports we file with the
SEC. You should read and interpret any forward-looking statement
together with reports we file with the SEC. Past performance may
not be indicative of future results. Different types of investments
involve varying degrees of risk. Therefore, it should not be
assumed that future performance of any specific investment or
investment strategy will be profitable or equal the corresponding
indicated performance level(s).
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version on businesswire.com: https://www.businesswire.com/news/home/20240404149034/en/
For inquiries, please contact: Jonathan Freedman Head of
Marketing and Communications Jefferies mediacontact@jefferies.com
Americas Division Media Relations SMBC Group
MediaRelationsAmericas@smbcgroup.com
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