Sumitomo Mitsui said to take 10% stake in SBI Holdings

SUMITOMO Mitsui Financial Group is preparing to take a stake in SBI Holdings, according to a person familiar with the matter, marking a major alliance between two Japanese financial giants. 

Japan’s second-largest banking group plans to hold as much as 10% of SBI, a stake valued at about US$443 million, the person said, asking not to be identified because the discussions are private. 

The Tokyo-based companies will collaborate on the securities business, the Nikkei reported earlier Tuesday, citing a person it didn’t identify. 

Representatives for SBI and Sumitomo Mitsui said nothing has been decided.

The deal would mark another significant acquisition for Sumitomo Mitsui after a string of deals. Speaking in an interview late last year, chief executive oficer Jun Ohta said he would weigh more transactions in the future after spending more than US$3.3 billion in Asia in 2021. 

SBI, Japan’s biggest online brokerage, has been expanding its banking operations by purchasing stakes in regional banks. It took control of mid-sized Japanese commercial lender Shinsei Bank last year, and is pursuing efforts to strengthen investment banking such as merger advising and securities underwriting.

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In 2020, the two companies agreed to cooperate in a strategic and capital alliance where their units would cooperate in digital and other fields. They also planned to work together in smartphone-based securities, over-the-counter securities, and to set up a fund to invest in fintech ventures, the firms said at the time.  BLOOMBERG