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

Analysts see gains in low-cost deposits alongside near-term execution risk.

Overview

  • Webster shareholders are set to receive $48.75 in cash plus 2.0548 Santander shares for each Webster share, a mix equal to roughly 65% cash and 35% stock.
  • The transaction is slated to close in the second half of 2026 pending regulatory approvals and shareholder votes, with both banks operating separately until then.
  • The combined company would have about $327 billion in assets, $185 billion in loans and $172 billion in deposits, ranking among the top 10 U.S. retail and commercial banks by deposits and the largest in Connecticut by market share.
  • Santander targets about $800 million of cost savings by the end of 2028, and its shares fell as much as 5% after the announcement as analysts highlighted integration and execution challenges.
  • Leadership plans include Webster CEO John R. Ciulla becoming CEO of Santander Bank N.A., Christiana Riley remaining U.S. country head, and Luis Massiani serving as U.S. chief operating officer.