SMBC Group and Jefferies Strengthen Strategic Alliance
Simpson Thacher is advising Sumitomo Mitsui Financial Group, Inc. (together with certain of its subsidiaries, “SMBC Group") in connection with the significant expansion of its global strategic alliance with Jefferies Financial Group Inc. (“Jefferies”).
SMBC Group and Jefferies signed a memorandum of understanding to expand their global strategic alliance by establishing a joint venture in Japan to conduct their wholesale Japanese equities business.
With a view to further deepening the strategic partnership, SMBC plans to increase its economic investment in Jefferies to up to 20.0% on an as converted and fully diluted basis. SMBC will continue to own less than 5% of a voting interest in Jefferies. The increased economic investment in Jefferies is subject to receipt of required regulatory approvals.
The Simpson Thacher team includes Sven Mickisch, Timothy Gaffney and Brian Christiansen (Financial Institutions); David Blass and Owen Lysak (Financial Regulatory); and Étienne Renaudeau and Peter Guryan (Antitrust).