(Bloomberg) -- Sumitomo Mitsui Financial Group Inc. has agreed to take a 10% stake in SBI Holdings Inc., marking a major alliance between two of Japan’s most prominent financial firms.
SBI, which runs Japan’s largest online brokerage, said it will raise 79.2 billion yen ($583 million) from a share sale through a third-party allotment to Sumitomo Mitsui, a regulatory filing showed Thursday.
The investment will help SBI shore up capital after buying stakes in several domestic lenders under Chief Executive Officer Yoshitaka Kitao. For Sumitomo Mitsui, Japan’s second-largest bank, the deal will allow it to tap SBI’s younger clients and expertise in digital services.
The Tokyo-based companies agreed on a capital and business tie-up in 2020, involving cooperation by units in digital and other fields.
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