Santander secures Fed approval for $12 bn Webster Bank acquisition

The U.S. Federal Reserve has given final approval to Banco Santander’s purchase of Webster Financial Corporation, the holding company of Webster Bank. The deal, valued at roughly $12 billion, clears the last regulatory hurdle after earlier sign‑offs from the Office of the Comptroller of the Currency and the European Central Bank. Santander expects the transaction to close on 20 August 2026.

The acquisition will add about $80 billion in assets and a strong deposit franchise in the Northeast United States, making Santander US one of the 20 largest banks in the country and the top lender in Connecticut. The group projects a 7‑8% rise in earnings per share and a return on tangible equity of around 18% by 2028, with a 15% return on invested capital.

Santander’s executive chair Ana Botín described the combination as “a perfect match,” while Christiana Riley, head of Santander US, and Webster CEO John Ciulla highlighted the expected synergies, expanded scale and enhanced ability to serve customers and communities. The Justice Department’s review found no significant competition concerns.