Paul J. Davies, Columnist

A Jefferies Takeover Is a Tough Ask for Japan’s SMFG

March 25, 2026 at 4:00 AM UTC

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

Japan’s Sumitomo Mitsui Financial Group Inc. should be wary of overseas adventures.
Photographer: Tomohiro Ohsumi/Bloomberg

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The history of Japanese deals for US investment banks is checkered at best. With one outright disaster, and several instances where the Americans have achieved the upper hand, Sumitomo Mitsui Financial Group Inc. ought to be wary of turning its stake in Jefferies Financial Group Inc. into a full-blown takeover.

Nomura Holdings Inc.’s rescue deal for the international arm of Lehman Brothers during the global financial crisis of 2008 provides a lesson in abject failure. A happier outcome is Mitsubishi UFJ Financial Group Inc.’s long partnership with Morgan Stanley — while it may not be exactly what the Japanese firm hoped for, the returns have still been worth it. But the former is more instructive for SMFG.