Finance
Santander to buy Webster Financial in $12.2 billion to create top-10 retail bank in U.S
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Home > Finance > Santander to buy Webster Financial in $12.2 billion to create top-10 retail bank in U.S
Quick Summary
Santander is set to acquire Webster Financial for $12.2 billion, enhancing its US presence and forming a top-ten bank by assets. The deal is expected to close in 2026.
Santander to buy Webster Financial in $12.2 billion to create top-10 retail b...
Santander's Strategic Acquisition
By Jesús Aguado and Arasu Kannagi Basil
Details of the Deal
MADRID/BANGLORE, Feb 3 (Reuters) - Santander will buy U.S. regional lender Webster Financial in a $12.2 billion deal to create a top-10 retail and commercial bank in the U.S. by assets, the Spanish bank said on Tuesday.
Impact on U.S. Banking Landscape
Santander first entered the U.S. market in 2005 when it bought Sovereign Bank and is currently one of the biggest lenders in its auto lending business.
Future Projections and Goals
It expanded into corporate and investment banking in 2023 after hiring more than a hundred staff from collapsed lender Credit Suisse.
"This transaction is strategically significant for our U.S. business, while remaining a bolt-on for the overall group," Santander Chairman Ana Botin said in a statement.
Botin said the acquisition would allow the bank to strengthen scale and profitability, improving the bank's funding mix and economics, including lower funding costs.
Santander has offered 2.0548 of its shares and $48.75 in cash for each Webster share. The deal is expected to close in the second half of 2026.
Centerview Partners, Goldman Sachs and Bank of America advised Santander on the deal.
The acquisition will put the bank on track to deliver a return-on-equity ratio of about 18% in the U.S. by 2028, among the top five for profitability within the 25 largest U.S. commercial banks, with a target of more than 20% by 2028 at group level.
On Tuesday, Santander also announced a rise of 12% in its 2025 net profit to 14.1 billion euros, above forecasts of 13.77 billion euros.
"Importantly, we can achieve this while maintaining all of our shareholder remuneration commitments, including the 5 billion share buyback we approved today and our broader distribution commitments," Botin said in a statement.
(Reporting by Jesús Aguado in Madrid and Arasu Kannagi Basil in Bengaluru; Additional reporting by Emma Pinedo; Editing by Krishna Chandra Elurio and Mark Porter)
Key Takeaways
- •Santander to acquire Webster Financial for $12.2 billion.
- •Deal strengthens Santander's US market presence.
- •Transaction involves shares and cash per Webster share.
- •Completion expected in the second half of 2026.
- •Advisors include Centerview Partners and Goldman Sachs.
Frequently Asked Questions about Santander to buy Webster Financial in $12.2 billion to create top-10 retail bank in U.S
1What is an acquisition?
An acquisition occurs when one company purchases another company, gaining control over its assets and operations.
2What is a regional lender?
A regional lender is a financial institution that operates in a specific geographic area, providing banking services to local customers.
3What are financial terms in a deal?
Financial terms in a deal refer to the specific conditions and agreements regarding payment, valuation, and other monetary aspects of a transaction.
4What is a commercial bank?
A commercial bank is a financial institution that offers services such as accepting deposits, providing loans, and offering basic investment products to individuals and businesses.
5What is the expected timeline for a financial deal?
The expected timeline for a financial deal outlines the projected schedule for completing the transaction, including key milestones and closing dates.
