Banco Santander to finalize Webster Financial acquisition in the U.S

Banco Santander is set to finalize its acquisition of Webster Financial in the United States on Thursday, August 20. The merger follows a series of regulatory approvals from the Federal Reserve, the European Central Bank, and the Office of the Comptroller of the Currency.

Upon completion, Webster Financial will be integrated into Santander Bank. The acquisition is a strategic move to strengthen Santander’s presence in the American market, following its recent purchase of TSB in the United Kingdom. Santander anticipates the deal will drive a return on tangible equity (ROTE) of approximately 18% and an increase in earnings per share of 7% to 8% by 2028.

As part of the transition, S&P Dow Jones is scheduled to remove Webster from the S&P MidCap 400 index before the market opens on August 20, replacing it with Sun Communities. The deal proceeded despite opposition from some U.S. senators regarding the geopolitical relationship between Spain and the United States.