The agreement stipulates that Banco Santander will acquire Webster Financial Corporation, the parent company of Webster Bank, for a total of 12.2 billion dollars (approximately 10.33 billion euros at the current exchange rate). The offer consists of 48.75 dollars in cash and 2.0548 newly issued shares of the Spanish bank (ADS) for each share of the acquired entity.
The acquisition will result in a stronger and more competitive bank for its customers.
This operation, which will be financed with Santander's excess capital and its future capital generation, aims primarily to boost growth in the United States. The group considers that the union of the two entities, “highly complementary,” will allow the Spanish company to expand its scale and deposit base in the North American country.
With this purchase, the group chaired by Ana Botín will become one of the top ten retail and business banking entities in the United States, with a combined balance sheet of 327 billion dollars in assets. The operation is expected to generate significant cost synergies, around 800 million dollars, and is projected to achieve an 18% ROTE (Return on Tangible Equity) by 2028.
