Santander Gets Fed Nod for Webster Acquisition

The Federal Reserve of the USA has authorized Banco Santander to acquire Webster Financial. This approval 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 on June 12 and the European Central Bank on July 21.

Banco Santander expects the acquisition to strengthen its activity in the US market, accelerating the achievement of its financial goals. The group estimates that once the integration is completed, its business in the US will reach a return on tangible equity (ROTE) close to 18% by 2028 and boost earnings per share by around 7% to 8%, generating a return on invested capital close to 15% also by 2028.

The acquisition is set to complete on August 20, after which most of Webster's business lines will be incorporated into Santander Bank. The president of Santander, Ana Botín, has stated that 'Santander US and Webster fit perfectly together' and that the union will strengthen their position in one of the most attractive banking markets in the world.