Spain's Banco Santander completes $12.3 billion acquisition of Webster Financial Corporation

Banco Santander has completed its acquisition of Webster Financial Corporation of Stamford, Connecticut, in a transaction valued at approximately $12.3 billion, the Spanish bank confirmed as the deal closed on 20 August. The deal was originally announced on 3 February 2026.

The valuation is based on Santander's share price on 2 February 2026, the day before the deal was announced. Under the terms, Webster shareholders receive $48.75 in cash and 2.0548 Santander American depositary shares for each Webster share.

SHARE ISSUANCE AND CAPITAL IMPACT

To deliver the equity component of the consideration, Santander issued 329,846,438 new shares through a capital increase by way of non-cash contributions, with an effective amount of about €3.56 billion.

Following completion, Webster's former shareholders own close to 2.2% of the enlarged Santander group.

Santander said the combined US business has a pro forma balance sheet of approximately $327 billion in assets, $185 billion in loans and $172 billion in deposits, based on balances as of 31 December 2025, and serves nearly eight million customers. Santander said Webster brings a high-quality, relationship-driven deposit base, deeper commercial banking capabilities and a distinctive Healthcare Financial Services platform.

COMPLETION AFTER SIX-MONTH APPROVAL PATH

The deal closed roughly six and a half months after its announcement on 3 February, following receipt of the required shareholder and regulatory approvals, including Federal Reserve approval in early August.

Upon closing, most of Webster's businesses became part of Santander Bank, N.A., and Santander said most everyday banking for customers of both banks will remain unchanged in the coming months. Former Webster chief executive John Ciulla is now chief executive of Santander Bank, N.A., while Christiana Riley remains chief executive of Santander US.

Santander shares trade in Madrid and, as American depositary shares, on the New York Stock Exchange.

When the deal was announced, executive chair Ana Botín called it strategically significant for Santander's US business while remaining a bolt-on for the overall group. Santander said the combination is expected to help it reach a return on tangible equity of around 18% in the United States by 2028.