Prudential Financial and Wachovia have agreed to a joint venture, merging the firm's retail brokerages. The combined forces represent $537 billion in client assets and estimated net revenue of $4.2 billion in 2002. The deal is set to close in the third quarter of this year.
The new firm, 62% owned by Wachovia and 38% owned by Prudential, will be based in Richmond, Va. John Strangfeld, vice chairman at Prudential, will serve as chairman for the new company. Each firm's equity research teams will remain separate.