Brookfield Tables $2.9B Takeover Offer for Australia’s Reliance Worldwide
Synopsis
Brookfield has proposed acquiring Reliance Worldwide for A$4.75 per share, valuing the Australian company at an enterprise value of A$4.1 billion.
Reliance Worldwide Brookfield takeover bid is progressing as the cash offer for ASX listed Reliance Worldwide Corporation is set to exceed A$4.75 per share ASX valuation, worth approximately A$4.1 billion with debt.
The offer valued RWC at around A$3.55 billion (US$2.91 billion), which is a 31.6 per cent premium to its closing price of A$3.61 before the release of the offer.
Brookfield Bid Follows Three Earlier Offers
The Reliance Worldwide Brookfield takeover bid comes after three previous non-binding offers in April and May of A4.15, A4.25 and A4.50 a share.
On 17 August, Reliance Worldwide entered into an exclusive period with Brookfield under a process deed signed with them the day before. RWC is prohibited from pursuing or discussing other proposals during that time.
The deal will be subject to additional due diligence and approval from Brookfield’s investment committee. If a scheme implementation deed is signed, RWC would be entitled to 30 days’ consideration of other proposals. Oaktower Partnership and Goldman Sachs are advising RWC.
The RWC ASX Brookfield offer follows on from about eight weeks of due diligence, according to the revised offer, as disclosed this week.
Latest Results Add Context to the Proposal
RWC’s FY2026 results revealed that revenue for FY2025 was US$1.3056 billion, down 0.7% from US$1.3147 billion, with adjusted net profit after tax down 15.3 per cent to US$125.1 million, and adjusted EBITDA slid 12.8 per cent to US$242.1 million.
Statutory net profit was down 95 per cent to US$6.3 million. The one-off charge, the result of which was included in the figure, was of US$103.3 million after tax, compared to the same period last year, the company reported, mainly due to the closure of the brass casting, forging and machining facility at Moorabbin and Braeside, Melbourne, and other smaller facilities.
RWC has operations in Americas, Asia-Pacific and Europe, Middle East and Africa, with Americas remaining its largest market, while the company is also dealing with the impact of US tariffs, increased input costs, and weakening demand in the US and UK.
Having a clear negotiation time frame, the Reliance Worldwide Brookfield takeover bid is still a non-binding offer for US and Australian investors, and has further conditions.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
