Reliance Worldwide shares reach one-year high as Brookfield agrees $2.9 billion takeover

Reliance Worldwide Corp (ASX:RWC) shares reached their highest level in more than a year on Wednesday after Brookfield agreed to buy the Australian plumbing-products manufacturer, in a transaction that values the company at approximately A$4.1 billion ($2.9 billion), including debt.

The stock advanced 6.5% to A$4.61, marking its strongest level since August 18, 2025, while the S&P/ASX 200 gained 0.3%.

Under the terms, Brookfield will pay A$4.75 per share in cash, implying an enterprise value of roughly A$4.1 billion for Reliance Worldwide.

The proposal carries a significant premium to Reliance Worldwide's trading level before the bid and comes after prior approaches at A$4.15, A$4.25 and A$4.50 per share.

Reliance Worldwide's directors have unanimously endorsed the transaction. Shareholders will be able to choose whether to receive the consideration in Australian dollars or U.S. dollars.

The deal follows a challenging trading stretch for Reliance Worldwide. It reported FY26 revenue of US$1.31 billion, down 0.7%, while adjusted EBITDA fell 12.8% to US$242.1 million, pressured by U.S. tariffs, higher copper costs, weaker end markets and cost inflation. Adjusted net profit declined 15.3% to US$125.1 million.

Brookfield's proposal emerged after four approaches this year, with the latest A$4.75 offer submitted in early August following an approximately eight-week due-diligence process. Reliance Worldwide had granted Brookfield exclusivity through September 15 while the two companies worked toward a binding deal.

The transaction also includes a 30-day go-shop provision, allowing Reliance Worldwide to solicit and negotiate alternative proposals after signing the scheme implementation deed. That provision had been agreed as part of the earlier process deed.

Brookfield has highlighted Reliance Worldwide's international plumbing-products business and its exposure to the U.S. market as part of the investment case. Reliance Worldwide owns brands including SharkBite, Cash Acme and John Guest and has operations across North America, Australia, Europe and other markets.

The company had also been restructuring its manufacturing footprint, including the planned closure of brass casting, forging and machining operations in Melbourne.