Group 1 - Jefferies Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. have expanded their global strategic alliance, which began in 2021, to enhance collaboration across multiple regions and services [1][2] - The new agreement focuses on deepening cooperation in capital markets, lending, and sponsor coverage, while also expanding equity ties and credit support [2][4] - A key aspect of the partnership is the planned merger of their wholesale Japanese equity research, sales, trading, and equity capital markets units, set to launch in January 2027 [3][4] Group 2 - The firms aim to enhance joint coverage of large sponsor clients, particularly in Europe, the Middle East, and Africa, through shared origination, underwriting, and execution of leveraged loans [4] - SMBC plans to increase its stake in Jefferies from 15% to as much as 20% by acquiring shares in the open market, pending regulatory approval [4] - SMBC will provide approximately $2.5 billion in new credit facilities to support activities such as EMEA leveraged lending, U.S. pre-IPO financing, and asset-backed securitization [5]