Citigroup has decided to give up its claims on Wachovia thus leaving Wells Fargo free to complete its $15 billion deal to acquire the Charlotte-based bank.

The exit of Citigroup Inc from the race to buy Wachovia Corp puts an end to two weeks of financial, legal and political wrangling which saw both Citigroup and Wells Fargo heading to the court to press their claims. Wachovia had out it self up for sale after incurring heavy losses due to mortgage-related loans and was coveted by major financial institutions for its extensive banking network. While Citigroup was the first to reach an understanding on acquisition, Wachovia eventually turned to Wells Fargo because of the latter’s more generous terms.

Even though Citigroup announced on Thursday that it was ending the acquisition bid for Wachovia, the New York-based company clarified that it will continue to press for claims worth $60 billion from Wells Fargo and Wachovia for striking an agreement after Wachovia had signed an exclusivity clause with Citigroup.

The acquisition of Wachovia’s lucrative bank branch network will make Wells Fargo the largest bank in the Washington area. It will also put Wells Fargo in the league of Bank of America and JP Morgan Chase who together control around one-third of the retail and commercial banking industry in the US.