Reliance Worldwide Agrees to US$2.9 Billion Buyout by Brookfield
Australian plumbing supplies company Reliance Worldwide Corporation has agreed to a buyout offer from global investment firm Brookfield valued at approximately US$2.9 billion. The deal, which follows multiple approaches by Brookfield since the first half of the year, offers US$3.38 per share. RWC's board unanimously supports the transaction, citing economic uncertainty and the impact of U.S. tariffs on its North American operations.
Reliance Worldwide Corporation (RWC), an Australian plumbing supplies company, has agreed to back a buyout offer from global investment firm Brookfield. The transaction is valued at approximately US$2.9 billion.
Brookfield switched its offer to US dollars, bidding US$3.38 a share. This amount is equivalent to the 4.75 Australian dollars offer made in August. The agreement follows three earlier approaches by Brookfield in the first half of the year before returning with a fourth bid worth 4.75 Australian dollars a share in August.
Following the announcement, shares of Reliance jumped more than 7 per cent in early trade on Wednesday to 4.65 Australian dollars before closing almost 3.5 per cent higher at 4.48 Australian dollars. During the same period, the S&P/ASX 200 index rose 0.3 per cent.
Russell Chenu, chair of Reliance Worldwide, stated that the board is unanimous in its view that the transaction is in the best interests of RWC shareholders. The board cited economic uncertainty and the impact of U.S. tariffs on the company’s North American operations as key factors.
Reliance depends on North America for the majority of its profit. CEO Heath Sharp said prospects were hard hit by tariffs. In the 2026 financial year, Reliance’s Americas sales slipped 4 per cent and adjusted operating earnings fell more than 11 per cent due to U.S. tariffs, lower volumes, and higher input costs.
Approval of the deal will likely depend on major shareholders, including pension funds AustralianSuper and Aware Super, who collectively own about 20.2 per cent of Reliance. AustralianSuper previously voted against Brookfield’s US$10.6-billion bid for Origin Energy in 2023.
The companies agreed to a “Go Shop” provision allowing Reliance Worldwide to seek rival bids, share due-diligence materials, and negotiate terms, while Brookfield retains the right to match any new offer.