Fed Clears Santander’s $12.3 Billion Webster Takeover

Spain’s Santander is seeking to acquire Webster Bank for $12.3 billion, a deal designed to expand its scale and competitive position in the United States. The transaction ranks among the largest bank takeovers and is being closely watched as a test of regulators’ stance toward major cross-border consolidation in the financial sector.

Santander said it expects the $12.3 billion acquisition to close by the end of 2026. The European Central Bank has approved the transaction, while clearance from the U.S. Federal Reserve remains outstanding. Despite recent political and trade-related distractions that have added uncertainty to the review process, Santander executives remain confident the deal will be completed this year.

Banco Santander has long relied on auto finance to expand its U.S. business but has a relatively weak retail deposit base and branch presence in the Northeast. Webster Financial has about $83 billion in assets, low-cost deposits and a health savings account business. The acquisition would strengthen Santander's funding base and scale as it seeks to raise the U.S. business's return on tangible equity to 18% by 2028.

Banco Santander announced on February 3, 2026, that it would acquire Webster Financial for about $12.3 billion in cash and stock, valuing the company at $75 per share. Webster shareholders approved the transaction on May 26, and the U.S. Office of the Comptroller of the Currency approved the bank merger on June 12. The deal is expected to close in the second half of 2026, subject to approvals from the Federal Reserve, the European Central Bank and other authorities.