Santander Clears Major Hurdle with Federal Reserve Approval for Webster Acquisition

The Federal Reserve of the United States has given its approval for Banco Santander to acquire Webster Financial, marking a significant step towards the completion of the deal. This authorization adds to the support that the operation had already received from Webster's shareholders and regulatory bodies such as the Office of the Comptroller of the Currency and the European Central Bank.

Banco Santander plans to complete the purchase on August 20, with the acquisition expected to strengthen its business in the US market. The entity estimates that the deal will generate a return on invested capital close to 15% by 2028 and boost earnings per share by around 7% to 8%.

After the transaction is finalized, most of Webster's business lines will be incorporated into Santander Bank, the group's banking subsidiary in the United States. The president of Santander, Ana Botín, stated that 'Santander US and Webster fit perfectly together' and that the union will create a stronger bank with better capabilities to provide service to clients and local communities.