The Federal Reserve granted final regulatory approval Tuesday for Banco Santander’s acquisition of Stamford-based Webster Financial, the parent of Webster Bank, clearing the way for the Spanish banking giant to close the $12.3 billion transaction later this month.
The central bank’s green light, coming 129 days after the application was filed, marks the last major regulatory hurdle for what stands as the largest U.S. bank deal announced this year. With the Office of the Comptroller of the Currency (OCC) and the Connecticut Department of Banking having signed off in June, and the European Central Bank (ECB) following suit in July, the transaction is now on track to close on August 20.
“We are pleased to be one step closer to this important, strategic acquisition that will expand our scale and round out our U.S. business model,” Christiana Riley, CEO and president of Santander US, said in a statement. She will continue to serve as Santander’s country head in the U.S. and CEO of Santander Holdings USA.
The combined entity will dramatically reshape Santander’s footprint in the northeastern United States. The Fed noted that upon completion, Santander Holdings USA will become the 19th-largest bank in the country, with approximately $253.6 billion in assets. Santander Bank will vault to the top spot for deposits in Connecticut, commanding an estimated $42.3 billion. It will also rank fourth in both Massachusetts and Rhode Island, and 11th in New York.
Webster, currently an $86 billion-asset institution, will become a wholly-owned subsidiary of Santander, which holds roughly $2.1 trillion in assets globally. Most of Webster’s businesses will be folded into Santander Bank N.A., the company’s primary U.S. banking franchise. Webster CEO and Chairman John Ciulla will take the helm of that integrated entity as its new CEO.
“This is an exciting moment that will allow us to bring together our two great organizations to benefit our customers and communities,” Ciulla said. “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.”
Ana Botín, executive chair of Santander, described the two lenders as “a perfect match,” adding that the 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.”
The deal dramatically consolidates the Connecticut banking landscape. Webster is the largest bank headquartered in the state, operating 95 branches across Connecticut compared to just 13 for Santander. As of June 2025, Webster held approximately $40.4 billion in deposits in its home state, dwarfing Santander’s roughly $1.9 billion, according to Federal Deposit Insurance Corp. data.
The Justice Department reviewed the proposed acquisition and determined it would not have a significantly adverse effect on competition, the Fed noted in its order. However, the central bank disclosed it had received four adverse comments on the proposal. One objector raised concerns about Santander’s track record, pointing out that the bank has “faced challenges” and closed branches in some countries, suggesting it might pursue similar actions in the U.S. market.
For customers, the transition will not be immediate. Santander and Webster officials emphasized that the two banks continue to operate independently for now, and customers do not need to take any immediate action. The formal integration process will begin after the August 20 closing date.