By Kosaku Narioka

Sumitomo Mitsui Financial Group Inc. and Jefferies Financial Group Inc. have formed a strategic alliance to work on leveraged finance and cross-border merger businesses, the companies said Wednesday.

The Japanese financial company plans to acquire up to 4.9% of Jefferies shares in the open market, worth about $386 million, they said.

Sumitomo Mitsui Financial Group and Jefferies will work on U.S. leveraged finance business, seek cross-border merger and acquisition opportunities involving Japanese companies and pursue business opportunities in the U.S. healthcare sector, the companies said.

Sumitomo Mitsui Financial Group Inc. has been bolstering its overseas operations in recent months to augment slow growth at home. It announced earlier this month a plan to buy a stake of around 75% in Fullerton India Credit Co., an Indian non-bank financial company, for about $2.0 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

07-14-21 0748ET