Shares of Prudential Financial (PRU) rose nearly 4% on Wednesday, a day after it was announced that Wells Fargo & Co. (WFC) would purchase Prudential’s minority stake in a joint venture through a cash payment of $4.5 billion.
The transaction is expected to close by Dec. 31.
The joint venture, which was originally launched by Wachovia Corp. with Prudential, became property of Wells Fargo after it acquired Wachovia.
“We thank Prudential for being a strong partner as we built the third largest retail brokerage firm in the nation,” said Wells Fargo Chief Financial Officer Howard Atkins, in a statement dated Tuesday. “Wells Fargo Advisors enhances and complements our customer-focused mix of businesses by offering outstanding investment products and advice. Wells Fargo considered the cost of Prudential’s put in the assumptions for the Wachovia merger and we are pleased to take this next step pursuant to the agreement between Wachovia and Prudential.”
Shares of Wells Fargo rose 18 cents or 0.70% on Wednesday to close at $25.84, before sliding 12 cents in trading after hours. Prudential shares rose $1.86 a share or 3.78%, Wednesday to close at $51.01; the stock was down 10 cents after the market closed.
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