In a significant move to strengthen its foothold in the U.S. financial sector, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has increased its equity ownership in Jefferies Financial Group, a prominent U.S. investment bank, to approximately 20%. The announcement was made jointly by both entities on Friday, September 19. Alongside the equity boost, SMBC has committed to providing Jefferies with $2.5 billion in new credit facilities, further solidifying the strategic partnership between the two institutions. This development underscores SMBC’s commitment to expanding its global financial services portfolio and leveraging Jefferies’ expertise in investment banking and capital markets. The collaboration is expected to enhance Jefferies’ liquidity and operational capabilities, while SMBC gains a stronger presence in the competitive U.S. financial landscape. The deal reflects the growing trend of cross-border financial alliances as institutions seek to diversify their portfolios and capitalize on emerging market opportunities.