Santander’s $12 Billion Webster Bank Deal Wins Fed Approval

Santander says the Federal Reserve has approved its acquisition of Webster Bank.

The $12 billion deal for the Connecticut-based Webster is now expected to close Aug. 20, Santander said in a news release late Tuesday (Aug. 4).

“Santander U.S. 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,” said Ana Botín, Santander’s executive chair.

“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.”

John Ciulla, Webster’s chairman and CEO, added that “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.”

Santander announced plans to acquire Webster in February, saying the new combined business would be in the top 10 retail and commercial banks in the U.S. in terms of assets and a top five deposit franchise in key states in the Northeast.

The Spain-headquartered Santander said the combined business would provide access to a larger branch and service footprint, improved digital and mobile banking capabilities, and expanded product offerings.

“This acquisition is a significant step forward in strengthening our commercial banking presence and filling in our retail branch footprint and scale, particularly in Connecticut, where we are committed to maintaining a broad branch presence,” Christiana Riley, CEO of Santander U.S., said at the time.

“The acquisition meaningfully expands our commercial franchise, resulting in a more balanced business mix and positioning us for sustainable, long-term growth.”

The Office of the Comptroller of the Currency (OCC) approved the acquisition in June, with the European Central Bank following suit in July, Santander said in its Tuesday announcement.

When the deal closes, most of Webster’s businesses will become part of Santander Bank, N.A., Santander’s American banking franchise. Until then, Santander and Webster will continue to operate independently, the bank said.

“Customers do not need to take any action at this time, and accounts, products, and services will continue to operate as they do today. Any future changes will be communicated in advance of implementation,” the release added.