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Mr. Cooper Group Inc. (NASDAQ:COOP), currently trading at $131.28 with a market capitalization of $8.4 billion, announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for its merger with Rocket Companies, Inc. has expired. The expiration of this waiting period, which ended at 11:59 p.m. Eastern Time on June 4, 2025, satisfies a key condition for the merger’s completion.
The merger agreement, initially disclosed on March 31, 2025, involves Mr. Cooper merging with Maverick Merger Sub, Inc., a wholly owned subsidiary of Rocket Companies. Following this, Mr. Cooper will merge with Forward Merger Sub, LLC, another Rocket subsidiary, resulting in Mr. Cooper becoming a wholly owned subsidiary of Rocket Companies. The announcement has contributed to Mr. Cooper’s strong performance, with the stock delivering a 36.74% return year-to-date.According to InvestingPro, Mr. Cooper shows several positive indicators, with 10+ additional exclusive insights available to subscribers.
Despite the expiration of the antitrust waiting period, the merger is still subject to other closing conditions. These include obtaining necessary regulatory approvals and receiving approval from Mr. Cooper’s stockholders. The companies expect the merger to conclude in the fourth quarter of 2025, provided all conditions are met.
This information is based on a press release statement from Mr. Cooper Group Inc.’s recent SEC filing.
In other recent news, Mr. Cooper Group reported a significant miss in its first-quarter 2025 earnings, with earnings per share (EPS) at $1.35, falling short of the expected $2.98. Revenue also did not meet forecasts, reaching $560 million against a projection of $620.43 million. Despite these shortfalls, the company highlighted the successful integration of its Flagstar acquisition, which contributed to a decline in servicing operating expenses. Mr. Cooper’s liquidity position improved to $3.9 billion, up from $3.4 billion, and the company is focusing on home equity loans and AI-driven customer service innovations.
Additionally, the company anticipates completing its transaction with Rocket Mortgage by the fourth quarter of 2025, aiming to create a comprehensive homeownership platform. Jefferies, a global investment banking firm, flagged potential risks for mortgage lenders, including Mr. Cooper, if government-sponsored enterprises like Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) are privatized. These risks could involve higher mortgage rates and reduced credit availability, affecting companies with a refinance-centric business model. The privatization could also lead to stricter underwriting standards and higher fees, impacting Mr. Cooper’s loan origination volumes.
Furthermore, Jefferies noted that market volatility and disruptions in mortgage-backed securities liquidity could result from uncertainty surrounding GSE reform. This could affect Mr. Cooper’s servicing rights and financing costs. Despite these challenges, Mr. Cooper remains focused on strategic initiatives and maintaining a robust liquidity position.
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