Daiwa Securities Group and Sumitomo Mitsui Financial have announced that they are ending their joint venture deal over Daiwa Securities SMBC, which was first closed in December 1998.

Daiwa currently owns 60 per cent of the joint venture and will take over the rest of 40 per cent SMFG owns effective 31 December. The dissolution was decided mutually and both companies have agreed to remain as primary business partners.

According to the official statement, both firms had been looking for the best growth solution ever since SMFG acquired Nikko Cordial Securities in May this year - and both realised that profits are maximised best as separate business entities.

Sumitomo Mitsui Banking will loan 100 billion Japanese yen ($1 billion) to Daiwa for the transaction.