Sumitomo Mitsui Financial Group Inc., one of Japan’s largest banks, is deepening an alliance with Jefferies Financial Group Inc., with the two companies announcing plans to work together on corporate and investment banking deals in the Canadian market.

New York-based Jefferies started a full-service investment bank in Canada in December, opening a Toronto office with more than 40 employees. It recruited a number of investment bankers and equity research analysts from rival Barclays Plc’s Canadian operations, including its president and chief executive officer, Bruce Rothney, who is now CEO of Jefferies Canada.

“Jefferies will now align its extensive industry, M&A, leveraged finance and equity capital markets knowledge in Canada with SMBC Group’s deep banking and debt capital markets expertise and strong balance sheet to support and serve clients,” the two banks said in a statement Thursday.

SMBC Group, the commercial banking subsidiary of Tokyo-based Sumitomo Mitsui, has had a strategic alliance with Jefferies since 2021, when the Japanese bank provided US$2.25 billion in financing to the New York investment firm and purchased about 4.5 per cent of its shares. Last year, SMBC increased its economic ownership of Jefferies to 15 per cent.

The two firms have expanded their initial partnership to numerous geographies over the years, including Europe, the Middle East and Africa.