Leucadia National Corporation (LUK) is merging with Jefferies Group (JEF).

Leucadia currently owns approximately 28.6% of Jefferies outstanding shares and plans to buy the rest from other shreholders. Executives of the two companies hold nearly 50% of those shares and are in favor of the deal.

Jefferies beefed up its securitization operations in the last two years. Jefferies, which will be the largest business of Leucadia, will continue to operate as a full-service global investment banking firm in its current form.

Upon the closing of the merger, Richard Handler will become the Chief Executive Officer of Leucadia and also remain Jefferies’ Chief Executive Officer.