Nomura Holdings, Japan�s largest brokerage, reached agreement yesterday to buy the European and Middle Eastern operations of bankrupt US investment bank Lehman Brothers Holdings that are based at London�s Canary Wharf.

Nomura Holdings, Japan's largest brokerage, reached agreement yesterday to buy the European and Middle Eastern operations of bankrupt US investment bank Lehman Brothers Holdings that are based at London's Canary Wharf.

The deal came just a day after Nomura's announcement to buy Lehman's Asian businesses for $225m.

Nomura did not say how much it is paying to acquire the European and Middle Eastern units.

"This transaction will significantly extend our European footprint and international reach, enabling us to realise our strategy of delivering Asia to the world," said Kenichi Watanabe, Nomura's chief executive.

The brokerage said it would take over Lehman's equities and investment banking operations in Europe and the Middle East. There are around 2500 staff at Lehman's European and Middle Eastern operations, and Nomura said "a significant proportion" of them would be retained after the takeover. Another 2000 people who were employed in other Lehman divisions in London have yet to find jobs.

Barclays - which has already bought Lehman's North American investment banking and capital markets businesses - was also interested in acquiring Lehman's European divisions but withdrew on Monday.

Watanabe said: "Our immediate priority is to get the equity and investment banking divisions back in business operating under the Nomura name."

PriceWaterhouseCoopers, appointed administrators of the UK operation after efforts to find a buyer for all of Lehman's operations failed, said it was "absolutely delighted" by the deal.

Mike Jervis, PwC joint administrator and partner, said: "Clearly we are very pleased with this outcome which secures the future of so many staff, but there is still a great deal of work to be done on this very complex administration."

Lehman became the latest victim of the credit crunch after racking up billions in losses on US sub-prime mortgages and commercial property investments.