What happened Shares of Jefferies Financial (NYSE: JEF) jumped 5.4% on Wednesday after the U.S. investment bank announced a strategic alliance with Japan-based Sumitomo Mitsui Financial Group (NYSE: SMFG). So what SMBC Group will provide Jefferies with a $1.65 billion revolving credit facility and a $250 million loan to bolster its lending capabilities. The Japanese banking giant also plans to buy as much as a 4.9% stake in Jefferies in the public markets, representing an equity investment of roughly $400 million. Jefferies Financial struck a deal with Sumitomo Mitsui Financial Group on Wednesday. Image source: Getty Images. The two companies will work together to pursue growth opportunities in corporate and investment banking, with a focus on cross-border mergers and acquisitions involving Japanese businesses. "We view the alliance as the beginning of a long-term relationship with SMBC Group, and we look forward to many years of partnering on many aspects of our respective businesses to best serve our clients," Jefferies CEO Rich Handler and President Brian Friedman said in a press release. Now what Jefferies is obtaining valuable expansion capital and relationships with potential Japanese partners, while SMBC Group is accelerating its expansion in the U.S. Taking a direct stake in Jefferies is also part of SMBC Group's strategy to broaden its investments by diversifying into more international markets. Both companies stand to benefit from the deal, which is why investors bid up Jefferies' shares today. 10 stocks we like better than Jefferies Financial Group Inc.When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Jefferies Financial Group Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc. The Motley Fool has a disclosure policy.Source