Jefferies Financial Group shares jumped in premarket trading following reports that Sumitomo Mitsui Financial Group (SMFG) is preparing a potential takeover. Japan’s second-largest lender has reportedly assembled a team to evaluate a bid if Jefferies' stock price remains attractive. SMFG already holds a significant minority stake in the U.S. investment bank.
The potential acquisition follows a substantial decline in Jefferies' share price during 2026. This valuation drop was driven by concerns over the bank's exposure to First Brands, a collapsed auto-parts supplier.
Reports indicate a bid is not imminent and faces significant regulatory and cultural hurdles. Some sources suggest SMFG has no immediate plans for an acquisition or active discussions. Both firms declined to comment on the speculation.