Reliance Worldwide shares surge after Brookfield tables $2.5 billion takeover bid

Reliance Worldwide Corp's shares skyrocketed 24.65% on Tuesday following Brookfield Capital Partners' announcement of a $2.5 billion takeover bid. Valued at A$3.55 billion ($2.52 billion), the proposal represents a 31.6% premium over the company's previous closing price of A$3.61. Including debt, the offer is worth around A$4.1 billion ($2.9 billion).

Brookfield's latest bid follows several previous proposals from the private-equity firm, including unsolicited offers in April, May, and June. After eight weeks of due diligence, Brookfield submitted its A$4.75 share offer in early August. The companies have now agreed to a four-week exclusivity period, from August 17 to September 15, during which Reliance Worldwide will not pursue alternative bids.

If an agreement is reached, Reliance would have 30 days to consider any competing offers. The takeover comes amid challenges faced by Reliance, including weaker operating conditions in key markets due to U.S. tariffs, higher input costs, and reduced demand in the U.S. and U.K. Brookfield's interest in Reliance's SharkBite plumbing system, a push-fit product requiring no specialized tools, underscores the value of the company's flagship product.

The transaction awaits further due diligence and Brookfield's investment committee approval, but for now, the A$4.75 offer remains non-binding.