Santander’s Acquisition of Webster Bank Could Be a Sign of What is to Come
Seeks to position itself as a top ten retail and commercial bank in the U.S. by assets
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- Written by Banking Exchange staff
Banco Santander announced this week that it has entered into an agreement with Connecticut-based Webster Financial Corporation, the holding company for Webster Bank.
Webster Bank is a diversified U.S. retail and commercial bank that will expand Santander’s scale, deposit base, and capabilities in the United States.
The acquisition will reportedly cost Santander about 4% of its assets and seeks to position the business as a top ten retail and commercial bank in the United States by assets and an even more dominant presence in the Northeast.
Webster Bank is extremely profitable, and this could be a sign of what is to come when it comes to global banks looking for a strong presence in the United States. Reuters priced the deal at $12.2 billion.
Combined, Santander and Webster would hold roughly $42.3 billion in Connecticut deposits, according to the Hartford Courant, surpassing Bank of America in total in-state deposits.
Santander already has a strong presence in Boston, New York, and New Jersey, but this will strengthen its impact in the Northeast and turn it into a top-five financial institution in the region.
Tagged under Mergers Acquisitions; Feature; M&A; Feature3;