Brookfield's $2.5bn takeover proposal for Reliance Worldwide
Brookfield Capital Partners submitted a fresh, non‑binding takeover proposal for Reliance Worldwide Corp (ASX:RWC) on 18 August 2026. The offer values the company’s equity at approximately A$3.55 billion (US$2.52 billion) and, when debt is included, places the total enterprise value at about A$4.1 billion (US$2.9 billion). The per‑share price of A$4.75 represents a 31.6 % premium to Reliance’s closing price of A$3.61 the day before the offer.
Following the announcement, Reliance Worldwide’s shares jumped 24.65 % to A$4.50, their highest level since 18 August 2025, while the broader S&P/ASX 200 index was largely unchanged.
Brookfield’s proposal follows a series of earlier unsolicited, non‑binding approaches made in April and May at A$4.15, A$4.25 and A$4.50 per share. After eight weeks of due‑diligence access, Brookfield presented the “meaningfully improved” A$4.75 offer in early August.
Reliance has entered a four‑week exclusivity period with Brookfield, running from 17 August to 15 September, during which it will not solicit or discuss alternative proposals or provide information to other potential bidders. If the parties sign a scheme implementation deed, Reliance would retain a 30‑day window to consider any competing offer.
The company has appointed Goldman Sachs and Oaktower Partnership as financial advisers to evaluate the proposal. The transaction remains subject to further due‑diligence and approval by Brookfield’s investment committee; consequently, the A$4.75 per‑share offer is not yet a binding takeover agreement.
Reliance’s recent annual results reflect challenging operating conditions in its key markets. Revenue declined 0.7 % to roughly US$1.3 billion, adjusted net profit fell 15.3 % to US$125.1 million, and statutory profit plunged 95 % to US$6.3 million. The company cited U.S. tariffs, higher input costs, and softer demand in the United States and United Kingdom as contributing factors.
Brookfield’s interest underscores the strategic value of Reliance’s SharkBite plumbing system, a flagship push‑fit product that enables pipe connections without specialist tools such as soldering or crimping.