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After months of waiting, a Spanish multinational bank has secured regulators’ approval to buy the biggest Connecticut-based bank.
European regulators approved Banco Santander’s bid to buy Stamford-based Webster Bank last month, as did one of the two U.S. bank regulators concerned, the Office of the Comptroller of the Currency. But it wasn’t until this week that the U.S. Federal Reserve gave its assent, too.
The roughly $12.3 billion deal is now expected to close Aug. 20, Madrid-based Santander said Tuesday.
The deal will take Santander’s U.S. franchise with $191.62 billion in assets and $149,51 billion in deposits, FDIC data shows. Once it closes, the combination will leave Middletown-based, $9 billion-asset Liberty Bank as the state’s biggest local financial institution.
“Santander US and Webster are a perfect match. Together, supported by Santander’s global platforms, technology and expertise, we will create a stronger bank with the scale to better serve our customers and communities,” Banco Santander Executive Chair Ana Botín said in a statement. “This combination will strengthen our position in one of the world’s most attractive banking markets and put us firmly on track to build one of the highest-performing banks among our U.S. peers.”
Webster has dozens of branches in Connecticut, its home state. Santander has 45 branch locations across the state, but it’s not clear if any will close as a result of the merger.
FDIC data shows Santander commands $1.9 billion in deposits in Connecticut, or 1.07 percent of the deposit market. Webster Bank controls thee second-biggest share of in deposits locally: $40.42 billion, or 22.77 percent deposit market share. The bank also runs a large health savings account business.
“This is an exciting moment that will allow us to soon bring together our two great organizations to benefit our customers and communities. Santander’s expanded scale, enhanced capabilities and financial strength will help us to deepen local relationships and build upon the trusted partnership that Webster customers have come to expect from us,” Webster Bank Chairman and CEO John Ciulla said in a statement.
