Banco Santander has completed its $12.2 billion acquisition of Webster Financial, a deal that significantly expands the Spanish banking group’s presence in the United States and brings its combined US operations to nearly eight million customers.

The transaction, originally announced in February, closed on August 20, 2026, following shareholder approval and regulatory clearances from the Federal Reserve, the Office of the Comptroller of the Currency, and the European Central Bank. Webster’s operations have largely been folded into Santander Bank, the group’s US banking subsidiary.

The merged entity carries a pro forma balance sheet of approximately $327 billion in assets, $185 billion in loans, and $172 billion in deposits, based on figures as of December 31, 2025.

John Ciulla, formerly CEO of Webster Bank, has assumed the role of CEO at Santander Bank. Ciulla said the combination allows the bank to “further deepen our local relationships with the support of Santander’s global scale, financial strength, and investment capabilities.”

“Together we are enhancing our ability to deliver broader products and services and remain committed to the trusted partnerships that have always been at the centre of how we serve our customers,” Ciulla said.

Santander US CEO Christiana Riley described the closing as “a pivotal moment in Santander’s long journey in the United States that underscores our confidence in the strength and opportunity in the U.S. market.”

“By bringing together Santander and Webster, we are combining two organisations with shared values and strong customer relationships,” Riley said. “Our five growing businesses will now serve nearly eight million customers across the U.S., with expanded reach and resources to better support their needs and the communities we serve.”

Integration Details

Webster’s former headquarters in Stamford, Connecticut, has become a Santander corporate hub in the US, joining the group’s US headquarters in Boston and existing corporate hubs in New York, Miami, and Dallas.

For now, most routine banking arrangements at Santander Bank and Webster Bank are expected to remain unchanged. Customers of both banks can now use Santander Bank and Webster Bank ATMs across the US for cash withdrawals without fees. Santander said any later changes would be communicated “well in advance” and that customers do not need to take any action at present.

As part of the merger mechanics, Webster Virginia was merged into Santander Holdings USA Inc., and Webster Bank, National Association, was combined with Santander Bank, National Association. Webster’s securities have been delisted from the New York Stock Exchange, and its reporting obligations are set to be suspended.

Capital Increase Executed

To fund the acquisition, Santander executed a capital increase with non-cash contributions that had been approved at the general shareholders’ meeting on March 27. The bank issued 329,846,438 new shares, representing 2.2455% of its share capital before the increase and 2.1962% after.

The effective amount of the capital increase reached 2.559 billion euros, with a nominal amount of 164.9 million euros and a share premium of approximately 3.394 billion euros. The new shares were priced at 10,789 euros per title, including nominal value plus share premium.

Following the issuance, Banco Santander’s share capital stands at 7,509,582,970 euros, represented by 15,019,165,940 shares with a nominal value of 0.50 euros each.

Regulatory Path and Political Opposition

The deal cleared a critical hurdle in early August when the Federal Reserve granted its approval. S&P Dow Jones subsequently announced that Webster would be removed from the S&P MidCap 400 index, with Sun Communities taking its place.

The transaction was not without political friction. US Senators Bernie Moreno and Tim Sheehy had attempted to block the acquisition, arguing that Spain is not a “reliable” ally for the United States. The objection did not ultimately prevent regulatory approval.

Financial Targets

Santander expects the transaction to contribute to its goal of achieving approximately 18% return on tangible equity in the US by 2028. The deal is also projected to increase earnings per share by roughly 7% to 8%.

The acquisition follows Santander’s recent purchase of TSB in the United Kingdom, underscoring the group’s broader strategy of strengthening its presence in core English-speaking markets under Executive Chair Ana Botín.

Webster Financial shareholders received a mix of Banco Santander American Depositary Shares and cash as consideration. Webster’s preferred stock was reorganized into new preferred series at Webster Virginia and later Santander Holdings USA.

MetricValueDeal value$12.2 billionPro forma assets$327 billionPro forma loans$185 billionPro forma deposits$172 billionCombined US customersNearly 8 millionTarget US ROTE by 2028~18%

Note: Figures based on data as of December 31, 2025, as reported by Santander.

With the integration now underway, Santander’s US operations represent one of the group’s most significant growth engines, combining Webster’s regional commercial and consumer banking footprint with Santander’s existing auto finance, private banking, and corporate banking businesses.