Joint VentureMay 12, 2026, 06:12 AM
SMFG to form intermediate holding company for securities business, Jefferies JV
AI Summary
SMBC Group announced a transition to an intermediate holding company structure for its Japanese securities business, effective around October 2026. This new structure, SMBC Nikko Securities Holdings Inc., will oversee SMBC Nikko Securities Inc. and the planned joint venture with Jefferies. The joint venture, SMBC Nikko Jefferies Securities, is progressing towards a January 2027 launch to integrate Japanese equities businesses globally, with SMBC Nikko Securities Holdings holding 60% voting rights. This strategic move aims to enable an integrated business model and align governance with the Group's strategy.
Key Highlights
- SMBC Group will transition to an intermediate holding company structure for its Japanese securities business around October 2026.
- A new entity, SMBC Nikko Securities Holdings Inc., will oversee SMBC Nikko Securities Inc. and the Jefferies joint venture.
- SMBC Nikko Securities Inc. will become a sub-subsidiary of SMFG under the new intermediate holding company structure.
- Progress is being made on establishing SMBC Nikko Jefferies Securities, a joint venture with Jefferies Financial Group Inc.
- The SMBC Nikko Jefferies Securities joint venture is scheduled to commence operations in January 2027.
- SMBC Nikko Securities Holdings will hold 60% voting rights and 70% economic ownership in the joint venture.
- SMBC Nikko Securities Inc. reported operating revenue of JPY 551,827 million for the fiscal year ended March 2026.
- SMBC Nikko Securities Inc. reported net profit of JPY 88,933 million for the fiscal year ended March 2026.