Banco Santander will complete its acquisition of United States regional lender Webster Financial on Thursday, August 20, after obtaining all necessary regulatory and shareholder approvals.
The transaction closes just over six months after it was first announced, as Spain's largest commercial bank expands its presence in North America. Santander, led by Executive Chair Ana Botín, confirmed the target completion date after securing clearance from the United States Federal Reserve earlier this month.
Prior to the opening of the stock market on August 20, index provider S&P Dow Jones will remove Webster Financial from the S&P MidCap 400 index. Webster will be replaced in the mid-cap benchmark index by real estate firm Sun Communities.
Regulatory approvals and market timeline
The acquisition cleared several key regulatory steps over recent months. Shareholders of Connecticut-based Webster Financial voted to approve the transaction at the end of May.
United States banking regulator the Office of the Comptroller of the Currency granted its approval on June 12, followed by clearance from the European Central Bank on July 21. Approval from the Federal Reserve earlier in August marked the final regulatory clearance needed to execute the merger.
The deal follows another major international expansion for the Madrid-headquartered bank. Just weeks ago, Santander completed its purchase of British retail bank TSB to increase its business in the United Kingdom.
Political opposition in the United States
According to news agency Europa Press, the purchase of Webster Financial is proceeding despite attempts by United States Senators Bernie Moreno and Tim Sheehy to block the transaction.
The two Republican senators tried to stop the acquisition from going forward, arguing that Spain has not always proven to be a reliable ally of the United States.
Financial targets and operational integration
Santander expects the transaction to strengthen its core business in the United States market while accelerating its long-term financial targets. Following full integration, Santander projects that its United States operations will achieve a return on tangible equity of approximately 18 percent by 2028.
The Spanish banking group estimates that the acquisition will increase earnings per share by around 7 percent to 8 percent by 2028, alongside a return on invested capital of nearly 15 percent.
Once the legal merger takes effect, most of Webster Financial's business lines will be integrated into Santander Bank, the group's retail and commercial banking subsidiary in the United States. Santander and Webster will continue to operate as independent entities until the transaction officially closes.
Joint integration teams from both banks have been collaborating since May to prepare for the transition on closing day. The combined planning teams have identified 225 critical operational points to manage during the integration process.
