The WFC Group Inc. stock price on Monday rose as much as 7 percent on the news that it will announce a merger with the parent company Nio.
Nio shares fell as much on Monday as WFC, though the two companies traded near a six-month high.
The news came as a surprise, given the WFCs strong performance in the second quarter, which ended on Sept. 15.
The stock price climbed by as much or more than 9 percent in the first hour of trading, but then began to fall.
Nio shares have fallen to below $2 a share.
WFC’s stock price fell by more than 6 percent in one hour.WFC said the merger will bring in $10 billion to $12 billion in new investment and create nearly 800 jobs.WDF, a unit of WFC and Nio, said in a statement that the deal is expected to close in the third quarter and be fully completed in the fourth quarter.
The merger is expected close to the end of 2019.
The news comes as WDF has become one of the most powerful players in the global energy industry.
WDF is in the process of forming a new $3 billion energy trading company with the help of WME Group Inc., according to Reuters.WFAA, the largest U.S. airline, is also looking to merge with WFC.
The deal is part of a merger that would combine the two largest U,S.
The airline group has a total of 2.8 million employees.
The WFC merger is not expected to affect the future of the WDF Group, the airline group said in its statement.