* SMFG wants to up stake in Daiwa SMBC as high as 67%-Yomiuri
* Resistance within Daiwa to losing control of JV-Yomiuri
* SMFG would merge Daiwa SMBC with Nikko wholesale ops-Yomiuri (Recasts, adds SMFG spokeswoman comment)
TOKYO, Aug 19 (Reuters) - Sumitomo Mitsui Financial Group is looking to take majority control of its investment banking joint venture with Daiwa Securities Group, the Yomiuri newspaper said on Wednesday.
Sumitomo Mitsui, Japan's third-largest bank by assets, has been pushing to build up its businesses in investment banking and securities.
The bank said in May it would buy Citigroup's brokerage and key investment banking units in Japan for about $6 billion, aiming to catch up with bigger rival Mitsubishi UFJ Financial Group and its alliance with Morgan Stanley.
Sumitomo Mitsui currently owns 40 percent of the venture, while Daiwa owns the remainder. Sumitomo Mitsui is keen to raise its stake in the unit, Daiwa Securities SMBC, to as high as 67 percent to gain control, the Yomiuri said.
The bank has previously said it would consider merging the venture with the wholesale business it bought from Citigroup.
However, Sumitomo Mitsui may face resistance from Daiwa, which is not keen to give up its control of the unit, the newspaper said.
A spokeswoman for Sumitomo Mitsui and a spokesman for Daiwa both declined to comment. (Reporting by Nathan Layne and David Dolan)