Santander (SAN.MC), the Spanish banking giant, has announced its intention to acquire U.S. regional lender Webster Financial (WBS.N) in a deal valued at $12.2 billion. This acquisition is aimed at creating a top-10 retail and commercial bank in the United States, based on asset size. Santander first entered the U.S. market in 2005 through the purchase of Sovereign Bank and has since become a significant player in the auto lending sector. The bank further expanded its operations into corporate and investment banking in 2023. Santander is a global financial services company providing a wide range of products, including retail and commercial banking, corporate and investment banking, and wealth management. Webster Financial is a regional bank offering financial services to individuals, families, and businesses primarily in the northeastern United States.
According to Santander Chairman Ana Botin, the acquisition holds strategic importance for the bank’s U.S. operations. The merger is expected to strengthen scale and profitability, improve Santander’s funding mix, and reduce overall funding costs. The terms of the deal involve Santander offering 2.0548 of its shares and $48.75 in cash for each share of Webster. The transaction is anticipated to be finalised in the second half of 2026.
Santander’s strategic advisors for the deal include Centerview Partners, Goldman Sachs, and Bank of America. The acquisition is projected to place Santander on a trajectory to achieve an approximate 18% return-on-equity ratio in the U.S. by 2028, potentially positioning it among the top five most profitable commercial banks in the U.S. Additionally, the group is targeting a return-on-equity exceeding 20% by 2028 at a group level.
In addition to the acquisition announcement, Santander also reported a projected 12% increase in its 2025 net profit, forecasting earnings of 14.1 billion euros, surpassing market expectations of 13.77 billion euros. Botin affirmed that these financial goals would be achieved while upholding all shareholder remuneration commitments, including a 5 billion euro share buyback program that has been approved. The information suggests a stable and growth-oriented future for the banking group.
