Banco Santander is set to acquire Webster Financial Corporation for $12.2 billion, aiming to establish a top-ten retail and commercial bank in the U.S. This move represents a significant push by the Spanish banking giant to expand its footprint in the American market. The deal values Webster at $75 per share, combining Santander's consumer finance business with Webster's commercial franchise.

Under the terms, Webster shareholders will receive a mix of cash and Santander shares. The acquisition is expected to result in a return on invested capital of approximately 15% for Santander, with earnings per share expected to increase by 7-8% by 2028. This deal reflects a broader trend of European banks seeking growth opportunities in the U.S. market, which is still highly fragmented.

Santander anticipates its U.S. return on tangible equity to reach 18% by 2028, with an efficiency ratio below 40%. The acquisition is designed to strengthen Santander's presence across key states in the Northeast. The bank's CET1 ratio is expected to remain robust, indicating a strong capital position. Christiana Riley and John Ciulla will lead the combined entities.

This acquisition underscores Santander's commitment to the U.S. market and its strategy to improve its funding mix. The integration of Webster will likely be closely watched by investors and analysts, as they assess the synergies and the potential impact on Santander's overall financial performance. The deal is still subject to regulatory approvals.