Spain’s Santander (SAN.MC) is set to acquire US regional lender Webster Financial (WBS.N) for $12.2 billion, a move that will establish it as one of the top ten retail and commercial banks in the United States. This acquisition marks a significant strategic investment in the US market for Santander, contrasting with the scaling back of some of its European rivals in recent years. Santander is a global financial services company offering a wide range of products and services, while Webster Financial is a regional bank providing financial services to individuals, families, and businesses.
Executive Chair Ana Botin is reinforcing Santander’s commitment to the US, aiming to position the bank among the largest in the country. The deal will give Santander a combined US balance sheet of approximately $327 billion in assets. The acquisition comes as expectations rise for increased takeover activity among US banks, fuelled by anticipation that regulators will approve deals previously hindered.
The transaction, structured as 2.0548 Santander shares and $48.75 in cash for each Webster share, is projected to finalise in the latter half of 2026. Santander anticipates significant cost synergies of around $800 million from the combination, equivalent to roughly 19% of the combined cost base. Following the acquisition, Santander projects its CET1 ratio will stand at 12.8%, exceeding 13% by 2027.
On Tuesday, Santander also reported a 12% increase in its 2025 net profit, reaching a record 14.1 billion euros, surpassing forecasts. Despite a decrease in lending income, the bank remains committed to shareholder remuneration, including a 5 billion euro share buyback. Santander also expects continued net profit growth beyond 2025, excluding the impacts of the agreed sale of its Polish businesses, the acquired TSB unit in Britain, and the Webster deal.
