Why is Reliance Worldwide stock rallying today?

Reliance Worldwide Corporation Ltd's stock surged nearly 4.3% to A$4.51 on Wednesday following Brookfield Asset Management's successful acquisition of the ASX-listed plumbing and water-flow solutions manufacturer. Brookfield reached a binding agreement to purchase Reliance Worldwide at A$4.75 per share in cash, with the company's board unanimously endorsing the offer to shareholders.

The deal is valued at around A$4.1 billion on an enterprise-value basis, which translates to approximately US$2.8–2.9 billion. Shareholders will vote on the transaction, which must also undergo regulatory and government approvals. The bid marks the end of Brookfield's persistent pursuit, which included three earlier unsolicited, non-binding offers at A$4.15, A$4.25, and A$4.50 per share before the A$4.75 offer was accepted.

A four-week exclusivity period concluded on September 15, allowing Brookfield to complete confirmatory due diligence. The binding scheme implementation deed includes a 30-day go-shop window, during which RWC can actively seek better competing proposals, offering shareholders additional optionality. Reliance Worldwide's stock rose past a 0.1% increase in the ASX 200 index.