Santander to acquire Webster Bank for $12.2 billion

Investing.com -- Spanish banking giant Santander announced Tuesday it will acquire Webster Bank for $12.2 billion, significantly expanding its presence in the United States.

Under the terms of the deal, Webster shareholders will receive $48.75 per Webster share in cash and 2.0548 Santander shares in the form of American Depositary Shares for each Webster share they own.

The acquisition is expected to boost Santander's profitability in the U.S. market, with the banking group projecting it will achieve an 18% return on tangible equity (ROTE) in the country by 2028.

Santander said its CET1 ratio, a key measure of financial strength, is expected to be between 12.8% and 13% by the end of 2026, and increase to over 13% by 2027.

Leadership continuity appears to be part of the integration plan. Christiana Riley will remain as Santander's country head in the U.S. and continue as Santander Holdings USA Chief Executive Officer. Meanwhile, Webster's current CEO, John Ciulla, will become the CEO of Santander Bank NA, where Webster's businesses will be integrated.

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