The logo of Sumitomo Mitsui Banking Corp. (Mainichi)

       TOKYO (Kyodo) -- Sumitomo Mitsui Financial Group Inc. said Wednesday it has reached a business and capital tie-up with Jefferies Financial Group Inc. and plans to purchase a stake of up to 4.9 percent in the U.S. group for around 42 billion yen ($380 million).

       The partnership is expected to enable the Japanese financial group to bolster its securities business in the United States.

       Established in 1962, New York-based Jefferies operates businesses ranging from investment banking to equities. It has been focusing on advisory services for corporate clients.

       Jefferies reported a net profit of $770 million in the year to November 2020. SMFG, which has Japanese megabank Sumitomo Mitsui Banking Corp. under its wing, logged a net profit of 512.81 billion yen in the year through March.

       SMFG has been expanding its overseas business. The group said in early July that it will acquire a 74.9 percent stake in nonbanking financial firm Fullerton India Credit Co. for about $2 billion, with an eye to eventually making it a wholly owned subsidiary.

       It has also agreed to take a 4.99 percent stake in Rizal Commercial Banking Corp. of the Philippines for about 10 billion yen.

       Font Size S M L Print Timeline 0