Yahoo Finance Jefferies Pops As Sumitomo Mitsui Agrees To Take Stake
By Dhirendra Tripathi
Investing.com – Jefferies Financial (NYSE:JEF) rose 8% Wednesday as Japan’s Sumitomo Mitsui Financial Group (NYSE:SMFG) agreed to acquire up to 4.9% in the company for approximately $386 million.
Sumitomo will buy Jefferies shares from the open market.
SMBC Group will also provide $1.9 billion in credit facilities to Jefferies Finance and $350 million to Jefferies Group.
A note issued by the companies said they will jointly pursue investment banking, capital markets and financing opportunities by leveraging both companies’ strengths, initially in the U.S. healthcare sector.
Japanese banks are returning to the U.S. market in search of growth and deal-making opportunities.
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Jefferies Pops As Sumitomo Mitsui Agrees To Take Stake
