SMBC NikkoSecurities Inc. formally signed a merger with SMBC Friend SecuritiesCo. Ltd. as part of a group-wide .

The merger is expected to be completed Jan. 1, 2018, withSMBC Nikko Securities emerging as the surviving entity. The securities firmwill also become a wholly owned direct subsidiary of following the merger.

The move is part of Sumitomo Mitsui Financial's efforts toenhance its securities business and improve the group's competitiveness.