UWM Deal for Two Harbors Terminated After Bidding War

United Wholesale Mortgage (UWM) and Two Harbors Investment Corp. ended their acquisition after a bidding process that included multiple UWM proposal revisions and a competing fixed all-cash bid from CCM.

Public filings described UWM revising its exchange ratio twice as its stock price declined, with the original all-equity structure based on an implied $11.94 price. When CCM advanced a fixed all-cash offer at $10.70 per share on March 17, UWM’s offer value fell to $8.54 per share. UWM later added a cash backstop guaranteeing up to $10.71 per share, with added cash capped at $2 per share (about $212.8 million). The CCM proposal included a $2 billion secured loan facility commitment letter and no financing contingencies. The termination followed Two Harbors disputing any breach and UWM signaling possible litigation.