Spanish banking giant Santander has announced its acquisition of Connecticut-based regional bank Webster Financial for $12.2 billion, signalling a major strategic push in the U.S. market. Analysts view the move as a pivotal step for Santander, positioning it among the top ten retail banks in the United States and substantially boosting both the scale and profitability of its American operations.
Under the terms of the deal, Santander will offer 2.0548 Santander shares plus $48.75 in cash for each Webster share. Ana Botín, Chairperson of Santander, stated:
“We do not plan to increase this offer. The transaction will enhance the size and profitability of our U.S. business while reducing funding costs.”
Webster Financial, primarily a Connecticut-based regional bank, brings a strong local footprint to Santander’s U.S. network. Following the acquisition, the combined U.S. balance sheet is expected to reach approximately $327 billion, with anticipated synergies of around $800 million.
In response to the announcement, Santander’s shares in the U.S. market closed 6.4% lower at $12.23, reflecting market volatility around large-scale acquisitions.
Key Details of the Webster Acquisition
| Item | Details |
|---|---|
| Acquisition Price | $12.2 billion |
| Offer Structure | 2.0548 Santander shares + $48.75 cash per Webster share |
| Combined U.S. Balance Sheet | $327,000 million |
| Expected Synergies | $800 million |
| U.S. Share Price Reaction | $12.23 (−6.4%) |
Santander first entered the U.S. market in 2005 through the acquisition of Sovereign Bank and has since become a significant player in the American auto loan sector. Under Ana Botín’s leadership, Santander has pursued sustained growth in the U.S., even as other European banks have scaled back or divested their U.S. operations.
Santander’s Financial Highlights (2025)
| Indicator | Actual | Forecast |
|---|---|---|
| Net Profit | €14.1 billion | €13.77 billion |
| Q4 Net Profit | €3.76 billion | €3.44 billion |
| Net Interest Income | €45.35 billion | €45.2 billion |
| ROTE | 16.3% | 16.5% target |
Following the Webster acquisition, Santander anticipates U.S. ROTE of 18% by 2028, while the group-wide ROTE is expected to exceed 20%. The bank has committed to distributing €10 billion to shareholders and repurchasing €5 billion of shares across 2026–2027. The CET1 ratio is projected to reach 12.8% post-acquisition and exceed 13% by 2027. Ana Botín emphasised that no new acquisitions are planned in the next three years, noting that the Webster transaction will generate significant cost savings and synergy opportunities valued at around $800 million.
This acquisition underlines Santander’s long-term commitment to the U.S. market, reinforcing its strategy of measured, profitable expansion amid a challenging European banking environment.