The acquisition marks a significant expansion for Santander in the US market, where it has been present since 2013.
Santander has been actively expanding its operations in the US, with a focus on growing its commercial and corporate banking business.
Deal Terms and Conditions
Under the terms of the deal, Webster Financial shareholders will receive $170 per share in cash, representing a premium of 15% to the bank's closing price on January 30.
The acquisition is expected to be funded through a combination of debt and equity, with Santander intending to issue new shares to help finance the deal.
Impact on the US Banking Sector
The acquisition is likely to have a significant impact on the US banking sector, with Santander set to become one of the largest foreign-owned banks in the country.
The deal is also expected to boost competition in the US market, with Santander's entry into new regions and markets potentially disrupting the existing market dynamics.
Regulatory Approval and Completion
The acquisition is subject to regulatory approval from the US Federal Reserve and the Office of the Comptroller of the Currency.
Santander has stated that it is working closely with regulators to ensure a smooth completion of the deal, with the acquisition expected to be completed by the second half of 2024.
The acquisition is seen as a strategic move by Santander to expand its presence in the US market and capitalize on the country's growing economy.
With the deal expected to close in the coming months, Santander is poised to become a major player in the US banking sector.