Annaly gets the approvals needed for acquisition's exchange offer
Annaly Capital Management will be able to proceed with a delayed exchange offer needed for its acquisition of MTGE Investment Corp. because it has been able to satisfy incomplete deal conditions.
The two hybrid mortgage real estate investments trusts "received the requisite regulatory approvals to complete its previously announced exchange offer," the company said in a press release.
The exchange offer needed to complete the acquisition is set to expire on Sept. 7. Both companies invest in residential mortgage and commercial real estate assets.
Approval delays recently derailed at least one proposed mortgage-related company acquisition.
Atlantic Bay Mortgage Group recently withdrew an application to acquire Virginia Community Bank from consideration by federal and state regulators, citing an "unclear" timeline for the deal. The proposed acquisition had been pending for more than a year.
While regulators may have had some unusual considerations when it came to Atlantic Bay Mortgage Group's acquisition plan because it involved a rare instance of a nonbank buying a bank, increased acquisition activity related to consolidation is more broadly expected to prolong timelines, which can put stress on deals.
There recently has been a wave of mortgage-related merger and acquisition activity and proposals among a broad range of companies, including real estate companies and technology vendors as well as nonbanks and banks.
Examples include Two Harbors Investment Corp.'s acquisition of CYS Investments, Zillow's purchase of Mortgage Lenders of America, Citizens Bank's acquisition of Franklin American Mortgage, Credit Karma's acquisition of Approved and Computershare's purchase of LenderLive Network.