Jefferies rallies as Sumitomo plans to lift stake to 15%

Sumitomo said the next phase of the alliance will enhance the collaboration that began in 2021, increasing the joint efforts across the firms’ M&A advisory services and equities and debt capital markets businesses, with a primary focus on investment grade clients in the US.

Under the expanded agreement, Jefferies and SMBC Group will combine US equities and M&A effort under Jefferies, and SMBC will be responsible for credit and SMBC Nikko Securities America will be responsible for debt capital markets, while Jefferies will be responsible for M&A and equity capital markets.

"Through the enhanced alliance, both firms will work to deliver best-in-class financial solutions by leveraging SMBC Group’s global client base, lending capacity, and debt capital markets capabilities and Jefferies’ extensive sector knowledge and investment banking capabilities, including its M&A advisory and equity franchises," Sumitomo said.

At 1355 BST, Jefferies shares were up 7.3% at $32.50 in pre-market trade.