April 4 (Reuters) - Jefferies Financial ( JEF ) will

strengthen its presence in Canada through an expanded

partnership with Japan's Sumitomo Mitsui Banking Corp (SMBC), as

it looks to tap into the dealmaking market in the country.

The companies said on Thursday they have worked together on

cross-border mergers and acquisitions, healthcare and leveraged

finance since 2021.

U.S. investment banks have been sharpening their focus on

Canada, which offers a competitive advantage.

Easing wage inflation and potential interest rate cuts in

Canada are expected to boost mergers and acquisitions (M&A) in

2024, analysts have said.

SMBC and Jefferies, which set up an investment banking unit

in Canada a few months ago, have been strengthening their

partnership.

Last year, the Japanese firm boosted its U.S. presence by

combining its U.S. equity and M&A business with Jefferies. The

deal also included SMBC's parent, Sumitomo Mitsui Financial

Group ( SMFG ), increasing its stake in the U.S. investment

bank.

In January, the two companies extended their alliance in the

Europe, the Middle East and Africa (EMEA) markets.

(Reporting by Pritam Biswas in Bengaluru; Editing by Shinjini

Ganguli)