Sumitomo Mitsui Financial Group's (TYO:8316) wholly owned subsidiary, SMBC Nikko Securities Holdings Establishment Preparatory, and SMBC Nikko Securities will enter into a share exchange agreement on Wednesday.
The move will result in SMBC Nikko Securities Holdings Establishment Preparatory Company becoming SMBC Nikko Securities' parent company, according to a Tokyo bourse filing on Tuesday.
SMBC Nikko Securities will then become an indirect subsidiary of Sumitumo Mitsui Financial Group.
Following the share exchange's effectiveness on Thursday, SMBC Nikko Securities Holdings Establishment Preparatory Company will change its corporate name to SMBC Nikko Securities Holdings.
The transaction is in connection to the group's transition to an intermediate holding company structure in Japan.
SMBC Nikko Securities Holdings will oversee the governance of SMBC Nikko Securities and SMBC Nikko Jefferies Securities, a joint venture with Jefferies Financial Group.