U.S. financial giants Wells Fargo & Co. and Citigroup Inc. have reached a deal resolving the contested takeover of Wachovia Corp. at the height of the financial crisis.

The two firms issued a statement Friday indicating that they have resolved litigation that ensued after Wachovia walked away from a deal with Citigroup and agreed to be acquired by Wells Fargo back in October 2008. At the time, a number of large financial firms were faltering and seeking either government bailouts or merger partners.

Initially, Wachovia was to sell Citi its banking operations in an FDIC-assisted transaction. But it subsequently agreed to an outright acquisition of the entire company to Wells Fargo in a non-FDIC deal.

According to the statement, Wells Fargo will pay Citigroup US$100 million to settle all claims related to the dispute.

“We are glad to put this matter behind us and we look forward to our two institutions working together constructively in the future,” the companies said.

IE