Banco Santander has secured approval from the Board of Governors of the Federal Reserve System for its planned purchase of Webster, parent company of Webster Bank in the US.
The transaction, worth $12.2bn, was first disclosed in February this year.
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Based on end-2025 figures, the combined business is expected to hold roughly $327bn in assets, with loans of $185bn and deposits of $172bn.
The Federal Reserve decision follows consent from the Office of the Comptroller of the Currency in June 2026 and approval from the European Central Bank in July 2026.
Completion is now scheduled for 20 August 2026.
Santander said the acquisition is intended to “strengthen” its US operations and support its financial targets.
After integration, the lender expects its US unit to post a return on tangible equity of about 18% by 2028.
It also expects the deal to add around 7–8% to earnings per share and deliver an estimated 15% return on invested capital by 2028.
Santander executive chair Ana Botín said: “Santander US and Webster are a perfect match. Together, supported by Santander’s global platforms, technology and expertise, we will create a stronger bank with the scale to better serve our customers and communities. This combination will strengthen our position in one of the world’s most attractive banking markets and put us firmly on track to build one of the highest-performing banks among our U.S. peers.”
After completion, most Webster operations will be absorbed into Santander Bank, N.A., the group’s US banking arm.
Until the deal is finalised, the two organisations will continue to run separately.
Customers are not required to take any action, and existing accounts, products and services will remain unchanged for now.
Any later changes will be communicated before they are introduced, the companies said.
Webster chairman and CEO John Ciulla said: “This is an exciting moment that will allow us to soon bring together our two great organisations to benefit our customers and communities. Santander’s expanded scale, enhanced capabilities and financial strength will help us to deepen local relationships and build upon the trusted partnership that Webster customers have come to expect from us.”
