Wells Fargo & Co. disclosed Wednesday that it will pay $4.5 billion in cash to Prudential Financial Inc. by yearend to purchase Prudential's minority stake in a joint venture that includes retail brokerage Wells Fargo Advisors.
Wells Fargo announced Monday it would purchase the stake, but did not say how much it expected to pay. Prudential in a filing earlier this year estimated its stake in the venture, which is owned by the two companies, was worth $5 billion.
Under the terms of the joint venture, Prudential exercised its right to require Wells Fargo to buy out the insurer's stake in the brokerage in 2010. Wells Fargo disclosed the purchase price Wednesday in a filing with the Securities and Exchange Commission. The bank said it will close the transaction by Dec. 31.