Jefferies will merge its investment-banking arm into its parent company by the end of fiscal 2022, the firm said Tuesday. The move will eliminate the need for both the investment bank and its holding company to file separate reports. The holding company will assume the investment bank’s debt, Jefferies said in a statement Tuesday.

Jefferies Group CFO Matt Larson will become finance chief of the parent company once the merger is complete, replacing Teri Gendron, who will stay at the company through the first half of 2023, then “pursue opportunities outside Jefferies,” the firm said. John Dalton, the holding company’s chief accounting officer, will also depart.

Jefferies also will sell Idaho Timber — its wood and lumber products business — in two deals, set to close in August, worth a combined $239 million that the company expects to generate a $140 million pretax gain.

In addition, Jefferies will spin off its holdings in Vitesse Energy by the end of the year to create a publicly traded oil and gas company to be listed on the New York Stock Exchange.

“Today’s announcement is yet another milestone in our long-term plan to focus Jefferies on its core businesses — investment banking and capital markets,” Jefferies CEO Rich Handler said in Tuesday’s statement.

Idaho Timber and Vitesse represent vestiges of the merchant-banking operation of Leucadia National, a holding company that agreed to buy Jefferies in 2012 for $2.8 billion and place Jefferies management in its C-suite.

Leucadia changed its name to Jefferies Financial Group in 2018 and sold off most of its meatpacking and auto-dealer businesses.

Jefferies' merchant banking portfolio, which includes investments in real estate, oil and gas, and public companies, was worth $1.6 billion at the end of May, a regulatory filing indicated.

Jefferies saw a 31% decline in investment banking and capital markets revenue between March and May, the company said.