Mortgage REIT Two Harbors jumps on UWM deal

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