SMFG to Buy $912 Million Jefferies Stake as Ties Deepen (1)

Sumitomo Mitsui Financial Group Inc.is raising its stake in Jefferies Financial Group Inc. and the banks will merge equity operations in Japan as their four-year partnership deepens.

Japan’s second-largest lender will increase its holding in the US investment bank to about 20% from 15% currently, though it will continue to have a less than 5% voting interest, the companies said in a statement on Friday. Sumitomo Mitsui plans to pay ¥135 billion ($912 million) for the additional stake, it said.

The Tokyo-based bank will provide Jefferies with about $2.5 billion in new credit facilities to collaborate in areas including ...