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Santander to Buy Webster Financial for $12.2 Billion in Cash-and-Stock Deal

Regulatory and shareholder approvals are pending, with closing expected in the second half of 2026.

Una agencia de Banco Santander en Londres.
Image
La presidenta del Banco Santander, Ana Botín. | EUROPA PRESS
La presidenta del Banco Santander, Ana Botín.

Overview

  • Webster shareholders will receive $75 per share, comprising $48.75 in cash plus 2.0548 Santander ADS per Webster share.
  • Santander projects about $800 million in annual cost synergies, EPS accretion of roughly 7–8% by 2028, and a U.S. ROTE near 18% in 2028.
  • The group expects a CET1 ratio of about 12.8–13% at end-2026 and above 13% in 2027, saying the deal is funded with excess and future capital without changing its payout policy.
  • Christiana Riley will remain U.S. country head, Webster CEO John Ciulla will lead Santander Bank NA, and Webster’s Luis Massiani will run integration and U.S. operations roles.
  • Shares fell for Santander and rose for Webster after the announcement, with local reports noting a planned €3.5 billion capital increase to support the share component and an ongoing €5 billion buyback approval.