From Yahoo Finance: 2025-03-31 11:18:00

Shares of Mr. Cooper Group surged 16.3% after announcing an acquisition by Rocket Companies. The $9.4 billion all-stock deal values Mr. Cooper at $143.33 per share, with a 35% premium. Rocket expects to be immediately accretive to earnings and aims for significant cost savings.

Rocket has been on an acquisition spree, recently acquiring Redfin for $1.75 billion. The addition of Mr. Cooper Group will make Rocket a major player in the U.S. mortgage market, handling one out of every six mortgages.

Despite high interest rates impacting the mortgage sector, Mr. Cooper Group has seen tremendous growth, up 2,146% in the last five years. The company is the largest mortgage servicer in the U.S., benefiting from high rates as fewer people refinance.

With Mr. Cooper Group’s stock trading at around $122, the acquisition by Rocket poses a potential merger arbitrage opportunity. However, regulatory risks could impact the deal’s closure, prompting investors to proceed with caution.

Read more: Why Shares of Mr. Cooper Group Are Blasting Higher Today