Santander Wins Federal Reserve Approval for Webster Acquisition

Santander, a global banking leader, has received approval from the Federal Reserve to acquire Webster Financial Corporation. The acquisition is expected to strengthen Santander's U.S. franchise and accelerate its financial objectives.

According to John Ciulla, Chairman and CEO of Webster, the deal will allow the two organizations to 'soon bring together' their efforts for the benefit of customers and communities.

The combined entity is expected to achieve a return on tangible equity (RoTE) of around 18% by 2028. The transaction is also expected to generate approximately 7-8% earnings per share accretion and an estimated 15% return on invested capital, all by 2028.

The acquisition is subject to certain conditions and will not be finalized until the deal closes. Until then, Santander and Webster will continue to operate independently, with customers' accounts and services unaffected.