Spain’s Banco Santander has agreed to purchase Webster Financial, the parent company of Webster Bank, in a $12.2bn deal.
Under the agreed terms, each Webster shareholder will receive $48.75 in cash and 2.0548 Santander shares for each share they hold.
This reflects a total value of $75 per Webster share, with 65% to be paid in cash and 35% in Santander shares.
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The addition of Webster Bank offers Santander a strong foothold in the US Northeast.
In addition to its Stamford, Connecticut headquarters, Webster has a presence in New York City, Rhode Island, and Massachusetts.
As per its fourth-quarter overview, the bank has nearly 200 branches and over $80bn in assets.
The deal unifies Santander strength in consumer finance and Webster’s commercial banking expertise.
In terms of assets, the merged entity is poised to become one of the ten largest retail and commercial banks in the US.
Webster CEO chairman and president John Ciulla said: “This is an exciting combination that brings together complementary strengths and a shared commitment to excellence.
“As a larger organisation, we will unlock greater scale, broader capabilities and new opportunities for growth-while remaining deeply focused on the people who define our success. I look forward to joining the Santander team and enhancing our ability to support clients across our expanded footprint.
The combined business is expected to have assets of about $327bn, loans totalling $185bn, and deposits amounting to $172bn based on end-2025 figures.
Estimated cost synergies are approximately $800m or 19% of the merged cost base, with an efficiency ratio target below 40% by 2028.
Both banks will continue operating independently until regulatory approvals are obtained and shareholders agree to the transaction.
No immediate changes are expected for customers.
The deal is anticipated to close in the second half of 2026, subject to customary closing conditions.
Santander US CEO Christiana Riley said: “This acquisition is a significant step forward in strengthening our commercial banking presence and filling in our retail branch footprint and scale, particularly in Connecticut where we are committed to maintaining a broad branch presence. The acquisition meaningfully expands our commercial franchise, resulting in a more balanced business mix and positioning us for sustainable, long-term growth.”
Banco Santander finalised the sale of a 49% stake in its Polish subsidiary, Santander Bank Polska, to Austria’s Erste Group, in a deal valued at around €7bn($8.2bn).
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