NEW YORK, Aug 12 Reuters Jefferies Financial Group said on Monday that Japan39;s Sumitomo Mitsui Banking Corp SMBC has more than doubled its stake in the U.S. investment bank to 10.9, deepening an alliance dating back to 2021.

As part of the expanded ties, Toru Nakashima, the CEO of Sumitomo Mitsui Financial Group, SMBC39;s parent, joined Jefferies39; board of directors on Monday, the U.S. bank said in a statement.

SMBC plans to increase its ownership of Jefferies to as much as 15, as flagged last year.

Under the partnership, Jefferies dealmakers take the lead on mergers and acquisitions MA and equity capital markets ECM, while SMBC bankers focus on corporate lending and investmentgrade debt issuance.

There39;s an active and broad pipeline of MA, ECM and leveraged financing activities involving SMBC and Jefferies working together, Jefferies President Brian Friedman told Reuters. Theres been a good number of completed deals and more in the pipeline.

SMBC39;s hefty balance sheet and its international client roster have boosted Jefferies39; involvement in overseas deals.

In the few short years that our strategic alliance has existed, it has already borne meaningful opportunities, Nakashima said in the statement.

Reporting by Lananh Nguyen in New York; Editing by Sonali Paul

Source Reuters