Sumitomo Mitsui explores potential Jefferies takeover

Japan’s Sumitomo Mitsui Financial Group is reportedly exploring a potential takeover of Jefferies Financial Group Inc.. According to a report from the Financial Times on Tuesday, the Japanese banking giant has established a specialized internal team to monitor the situation and ensure readiness should a significant drop in share price present a strategic buying opportunity.

While the financial group is actively evaluating the prospect, any formal move is not considered imminent. The report further noted that it remains uncertain whether executives at the investment bank would be open to a sale while the company's valuation remains depressed.

Jefferies currently holds a market capitalization of approximately $8.17 billion, according to data from LSEG. However, its stock has faced considerable pressure recently, with shares declining by more than 36% since the start of the year. As of Tuesday morning, the firm had not issued an official response to requests for comment regarding the takeover speculation.