JEF - Why Jefferies Stock Surged Today
Shares of Jefferies Financial (NYSE: JEF) jumped 5.4% on Wednesday after the U.S. investment bank announced a strategic alliance with Japan-based Sumitomo Mitsui Financial Group (NYSE: SMFG) .
SMBC Group will provide Jefferies with a $1.65 billion revolving credit facility and a $250 million loan to bolster its lending capabilities. The Japanese banking giant also plans to buy as much as a 4.9% stake in Jefferies in the public markets, representing an equity investment of roughly $400 million.
Jefferies Financial struck a deal with Sumitomo Mitsui Financial Group on Wednesday. Image source: Getty Images.
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Why Jefferies Stock Surged Today