In an effort to get into the deal making business in Canada, Jefferies Financial (JEF.N), opens new tab, will deepen its relationship with Sumitomo Mitsui Banking Corp (SMBC) in Japan. 

Competitive Edge

The businesses announced on Thursday that since 2021, they have collaborated on leveraged finance, healthcare, and international mergers and acquisitions.

Investment banks in the United States have been concentrating more on Canada because of its competitive edge.

According to economists, a decrease in wage inflation and possible reductions in interest rates in Canada are anticipated to stimulate mergers and acquisitions (M&A) in 2024.

Investment In Canada

Following the establishment of an investment banking division in Canada a few months ago, SMBC and Jefferies have been fortifying their alliance.

The Japanese company increased its footprint in the United States last year by merging its M&A and equity businesses with Jefferies.

Additionally, Sumitomo Mitsui Financial Group (8316.T), the parent company of SMBC, increased its ownership of the American investment bank by participating in the transaction.