Santander’s $12.2B Webster Financial Deal Faces Uncertainty Amid U.S.–Spain Trade Tensions

Banco Santander’s proposed $12.2 billion acquisition of U.S. regional lender Webster Financial may face delays following comments from President Donald Trump suggesting a halt in trade with Spain. According to Wells Fargo analyst Mike Mayo, the escalating U.S.–Spain trade tensions could complicate the regulatory approval process required for the deal to move forward.

In a note to clients on Tuesday, Mayo downgraded Webster Financial’s stock to “underweight,” citing concerns that the political environment may create additional obstacles for Santander’s takeover of the Connecticut-based bank. The deal, which was announced last month, is a key part of Santander’s strategy to strengthen its footprint in the United States banking sector.

Mayo referenced the president’s remarks about suspending trade with Spain and suggested that such a stance could influence regulators reviewing the transaction. If tensions between the two countries persist, U.S. authorities may take a more cautious approach toward approving the acquisition. Even in a best-case scenario, Mayo warned that the process could take longer than initially expected.

Santander, the largest bank in Spain, aims to use the Webster Financial acquisition to expand its U.S. operations and secure a place among the top 10 retail and commercial banks in the country. If the transaction is completed, Santander’s combined U.S. balance sheet would reach approximately $327 billion in assets, significantly boosting its presence in the American financial market.

During an interview with Bloomberg TV, Santander Executive Chair Ana Botín acknowledged the current geopolitical tensions but expressed optimism about long-term relations between Spain and the United States. She noted that the two countries have historically maintained a strong partnership and suggested that the relationship would likely stabilize despite current challenges. Botín did not comment directly on regulatory discussions regarding the acquisition but confirmed that Santander remains committed to serving its five million U.S. customers.

Market reactions reflected the uncertainty surrounding the deal. Webster Financial shares dropped 3.2% in late afternoon trading, while Santander’s stock closed more than 6% lower. Analysts also warned that if regulators ultimately reject the acquisition, other banks could attempt to purchase Webster. However, any alternative deal might come at a lower valuation, potentially reducing the price by as much as 10%.