Japan's Sumitomo Mitsui to buy 5% of Jefferies for $380M - report

The move is part of SMFG's effort to strengthen its securities business in the United States

Sumitomo Mitsui Financial Group Inc, Japan's second-largest lender by assets, plans to buy 5% of Jefferies Financial Group Inc shares for around 42 billion yen ($380.19 million), the Nikkei reported on Wednesday.

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The move is part of SMFG's effort to strengthen its securities business in the United States to tap strong demand for M&A deals and financing, Nikkei said.

Ticker Security Last Change Change %
JEF JEFFERIES FINANCIAL GROUP, INC. 36.54 +0.09 +0.25%

SMFG, in a statement, confirmed that it is considering the capital tie-up with Jefferies and would make an announcement when the two companies agreed to a deal.

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Japanese banks have been seeking business opportunities abroad as the country faces an aging and shrinking population.

Earlier this month, SMFG announced its plans to buy a 74.9% stake in Fullerton India for $2 billion, the first major foray by a Japanese bank into India during recent times.

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($1 = 110.4700 yen) 

(Reporting by Tokyo Newsroom; Editing by Christopher Cushing and Shailesh Kuber)