Why is Reliance Worldwide stock surging today?

Reliance Worldwide Corporation Ltd's stock experienced a massive surge of 24.1% to A$4.48 on Tuesday following a significantly improved all-cash takeover offer from Brookfield Capital Partners LLC. The new proposal valued the company at approximately A$4.1 billion and its equity at A$3.55 billion, up from the company's prior lowest acceptance of A$4.50 per share, which it had rejected twice.

This offer, Brookfield's fourth and highest, comes with exclusivity through September 15, 2026, during which Reliance Worldwide cannot seek or entertain rival bids. The announcement led to an immediate re-rating of the stock towards the offer price, reflecting the market's anticipation of a completed transaction. Despite a decline in adjusted EBITDA by around 12.8% to AUD 242.1 million and a substantial drop in net profit to US$6.3 million from US$125 million in the FY2026 results, the board decided to withhold the final dividend due to the pending proposal.

This news contributed to Reliance Worldwide being among the top gainers on the ASX 200, although the index saw little movement.