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Jefferies and SMBC Expand Strategic Alliance to Canada

Jefferies Financial Group Inc. (NYSE: JEF) (“Jefferies”) and SMBC Group announced today that they have expanded their global strategic alliance to enhance collaboration on future corporate and investment banking business opportunities within the Canadian market. SMBC Group comprises Sumitomo Mitsui Financial Group, Inc. (NYSE: SMFG) (“SMFG”), Sumitomo Mitsui Banking Corporation (“SMBC”), SMBC Nikko Securities America, Inc., SMBC Nikko Securities Canada, Ltd., and other group companies.

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In December 2023, Jefferies announced that it established full-service investment banking and capital markets capabilities in Canada, opening a new 40+ person office with dedicated expertise across investment banking, equity research, and sales and trading in all sectors. Jefferies will now align its extensive industry, M&A, leveraged finance and equity capital markets knowledge in Canada with SMBC Group’s deep banking and debt capital markets expertise and strong balance sheet to support and serve clients.

The SMBC-Jefferies strategic alliance commenced in 2021, focused on U.S. leveraged finance and Japan cross-border M&A. In 2023, it was significantly expanded in the U.S. to broaden the scope of collaboration in M&A advisory services, increase collaboration across the firms’ equities and debt capital markets businesses, and launch a joint coverage model for designated investment grade clients. In January 2024, the alliance was further extended to cover Europe, the Middle East and Africa (EMEA).

In support of the initial strategic alliance in 2021, SMBC provided $2.25 billion in financing to Jefferies and purchased approximately 4.5% of the outstanding common shares of Jefferies. In April 2023, the alliance was further bolstered when SMBC announced plans to raise its economic ownership to up to 15% on an as-converted and fully diluted basis, which would result in SMBC becoming Jefferies’ largest shareholder.

Bruce Rothney, CEO of Jefferies Canada, stated: “In just the first few months since opening Jefferies’ new Canada office, we have already witnessed the benefits that the Jefferies-SMBC strategic alliance will bring to our valued clients. SMBC’s capital base and world-class capabilities will enable us to jointly offer comprehensive, full-service solutions to our clients in Canada. We are excited by the opportunity to accelerate efforts with our partners at SMBC as we pursue our mission of establishing Jefferies as a leading full-service global investment banking and capital markets firm in Canada.”

Takeshi Okamoto, General Manager of SMBC Canada, commented: “Adding another region to SMBC’s strategic alliance with Jefferies builds on our initial success as global partners. We look forward to better serving our Canadian clients through the combined power of Jefferies’ and SMBC’s strengths in global investment banking and corporate banking, and are eager to continue expanding our alliance.”

About Jefferies Financial Group Inc.

Jefferies is a leading, global, full-service investment banking and capital markets firm. With more than 40 offices in 20 countries around the world, we offer insights and expertise to investors, companies and governments.

About Sumitomo Mitsui Financial Group, Inc.

SMFG is one of the largest financial institutions headquartered in Japan, with an established presence across all consumer and corporate banking businesses. Through the subsidiaries and affiliates, SMFG offers a diverse range of financial services, including commercial banking, leasing, securities, credit card, consumer finance and other services.

About Sumitomo Mitsui Banking Corporation

SMBC is the commercial banking subsidiary of SMFG and one of the largest banks globally on the basis of total assets. It provides an extensive range of corporate and consumer banking services in Japan and globally.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements about our future and statements that are not historical facts. These forward‐looking statements are typically identified by such words as “believe,” “expect,” “anticipate,” “may,” “intend,” “outlook,” “will,” “estimate,” “forecast,” “project,” “should,” and other similar words and expressions, and are subject to numerous assumptions, risks, and uncertainties, which will change over time. Forward-looking statements may contain beliefs, goals, intentions and expectations regarding revenues, earnings, operations, arrangements and other results, and may include statements of future performance, plans, and objectives. Forward-looking statements also include statements pertaining to our strategies for future development of our businesses and products, including Jefferies and SMBC Group’s strategic alliance. In particular, forward-looking statements include statements about the potential benefits of the collaboration with SMBC Group and SMBC’s intention to increase its equity investment in Jefferies, as SMBC is under no obligation to do so. Forward‐looking statements speak only as of the date they are made; we do not assume any duty, and do not undertake, to update any forward‐looking statements. Furthermore, because forward‐looking statements represent only our belief regarding future events, many of which by their nature are inherently uncertain, the actual results or outcomes may differ, possibly materially, from the anticipated results or outcomes indicated in these forward-looking statements. Information regarding important factors, including Risk Factors that could cause actual results or outcomes to differ, perhaps materially, from those in our forward-looking statements is contained in reports we file with the SEC. You should read and interpret any forward-looking statement together with reports we file with the SEC. Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s).


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