Wells Fargo in San Francisco and Fiserv in Milwaukee are planning to end joint venture Wells Fargo Merchant Services.
Fiserv disclosed in a regulatory filing that it expects to record a noncash impairment charge in the third quarter. The company, which inherited a 40% stake in the WFMS from its 2019 purchase of First Data, said it the venture is expected to expire on April 1.
Fiserv said that, upon expiration, it should receive a cash payment or assets equal to the value of its share of the venture. Still, it expects to record an impairments charge between $400 million and $600 million.