Mortgage REIT Two Harbors jumps on UWM deal

Two Harbors Investment

17/12/2025 16:28

** Shares of real estate investment trust Two Harbors Investment Corp TWO.N rising 12% on Weds to $11.10 after lender UWM Holdings UWMC.N said it would buy the co in a $1.3 bln all-stock deal

** TWO shares on course for steepest daily pct gain in more than two years

** Under the deal, TWO shareholders will receive 2.3328 UWM shares for each TWO share, a value of $11.94/shr and a ~21% premium to the co's 30-day VWAP (volume-weighted avg price)

** The transaction comes amid consolidation in the U.S. mortgage industry as lenders seek greater scale after high interest rates curtailed refinancing activity and pressured earnings

** Through Tues close, TWO shares had shed 16% in 2025, giving co a $1 bln market cap

** UWMC shares falling 5.7% to $4.83 on Weds, extending YTD loss to ~18%. Co had roughly $8 bln market value through Tues close

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))