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Brookfield's Reliance Worldwide takeover clears go-shop hurdle

Brookfield's Reliance Worldwide takeover clears go-shop hurdle

Money Moves

Board holds its recommendation after a month of market testing found no rival, with a shareholder vote due in December

October 19th, 2026: RWC confirms go-shop closed, sets scheme timetable

Overview

Updated Oct 23

Reliance Worldwide's board is still telling shareholders to take Brookfield's US$3.38-a-share cash offer after a month-long search for a rival turned up nothing. Executives repeated that view at the company's annual general meeting in October, and the shareholder vote is set for early to mid-December.

The price has not moved in US dollars. Its Australian-dollar equivalent rose to about A$4.87 from A$4.75 at signing only because the currency weakened, from 0.7122 to 0.6947 against the US dollar. The offer values RWC's equity at about US$2.53 billion, roughly A$3.6 billion, and Brookfield aims to complete in late December 2026.

Why it matters

Reliance Worldwide shareholders get US$3.38 per share, implied A$4.87, as Brookfield takes the plumbing fittings maker private.

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Key Indicators

A$4.87
Implied offer per share
US$3.38 cash offer, unchanged since signing, implied A$4.87 at AUD/USD 0.6947 on October 16, 2026.
US$2.53B
Equity value
Value of RWC's ordinary shares at US$3.38 each, or about A$3.6 billion at the October 16 exchange rate.
31.6%
Premium over pre-bid close
A$4.75 offer versus A$3.61 closing price on August 17, 2026, as stated by RWC at signing.
$25.3M
Break fee
Payable by either side in certain circumstances under the Scheme Implementation Deed; a matching reverse fee is owed to RWC.
12.1x
EV/EBITDA multiple
Transaction multiple on fiscal 2026 adjusted EBITDA, post-AASB16 basis.

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People Involved

RC
Russell Chenu
Chair of Reliance Worldwide
Leading the board's recommendation to accept Brookfield's offer

Organizations Involved

Brookfield Asset Management
Brookfield Asset Management
Alternative asset manager
Bidder proposing to take Reliance Worldwide private

Toronto-based investment firm that made three approaches for Reliance Worldwide before settling on A$4.75 per share.
Reliance Worldwide Corporation
Reliance Worldwide Corporation
ASX-listed manufacturer
Takeover target awaiting the release of its scheme booklet and a December 2026 shareholder vote

Plumbing fittings maker best known for SharkBite push-to-connect products, listed on the Australian Securities Exchange.

Timeline

April 2026 October 2026

9 events Latest: October 19th, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. RWC confirms go-shop closed, sets scheme timetable

    Latest Milestone

    RWC announces no rival proposal emerged during the go-shop period. Scheme booklet due early November, scheme meeting early to mid-December, implementation expected late December 2026.

  2. Brookfield clears go-shop hurdle

    Milestone

    Brookfield's bid survives the go-shop; focus shifts to securing shareholder votes.

  3. Go-shop period expires

    Milestone

    The 30-day rival-bid window closes at 11:59pm Melbourne time with no competing offer.

  4. Executives restate support at annual general meeting

    Milestone

    At the annual general meeting in Brisbane, executives said the company had actively sought alternative proposals and none had emerged that was better than Brookfield's.

  5. Scheme deed signed, go-shop opens

    Agreement

    Brookfield and RWC sign a Scheme Implementation Deed; shares jump over 7%.

  6. RWC signs process deed at A$4.75

    Agreement

    RWC enters a process deed with Brookfield; A$4.75 offer carries a 31.6% premium.

  7. RWC shares close at A$3.61

    Market

    Reliance Worldwide closes the day before bid talks were disclosed.

  8. Brookfield raises its offer

    Proposal

    Brookfield lifts the proposal to A$4.25 then A$4.50 per share.

  9. Brookfield makes first approach

    Proposal

    Brookfield submits an unsolicited cash proposal at A$4.15 per share.

Scenarios

1

Brookfield completes A$4.75 per share takeover of Reliance Worldwide

Likely Resolves by Q1 2027

Discussed by: AFR Street Talk and Reuters, both reporting the deal moving toward completion

With the go-shop closed, Brookfield campaigns for shareholder votes and clears court and regulatory approvals. Reliance Worldwide expects implementation in Q1 2027. If completion slips past March 31, 2027, Brookfield pays a ticking fee of 0.0263 US cents per share per day.

2

Reliance Worldwide shareholders reject Brookfield's scheme

Unlikely Resolves by Q1 2027

Discussed by: Kalkine and Law360 Australia, noting the board's backing but the floor left open for rivals

The scheme fails if shareholders vote it down at the scheme meeting, or if a rival bidder tops Brookfield before the vote. Deal protections make this hard: Brookfield holds a matching right and would collect a US$25.3 million break fee if RWC walked away. A negative independent expert report could also sink it.

3

Regulatory or court delays push completion past Q1 2027

Possible Resolves by Q2 2027

Discussed by: Reliance Worldwide's own scheme deed announcement, which flags the Q1 2027 date as indicative

The scheme requires court sanction, regulatory approvals and no material adverse change before the second court date. Any of these could slip the current target. If completion lands after March 31, 2027, Brookfield pays the ticking fee but the deal continues.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

February–October 2013

Dell going private (2013)

Founder Michael Dell and Silver Lake agreed to take the computer maker private. A go-shop window let rival bidders step forward, and investor Carl Icahn pushed for a higher price, forcing the offer up before it closed.

Then

The deal closed in October 2013 after the price was raised to win over holdout shareholders.

Now

It became a template for how a go-shop window and activist pressure can reshape price even after a deal is signed.

Why this matters now

Like Dell, Reliance Worldwide runs a go-shop window that invites rival bids; the Dell case shows such windows rarely produce a rival but can still shape the final terms.

January 2022 – October 2023

Microsoft–Activision Blizzard (2022–2023)

Microsoft agreed to buy game maker Activision Blizzard for US$68.7 billion in cash, a cross-border mega-deal that needed approvals from regulators in the US, UK and EU.

Then

After a year of regulatory battles, the deal closed in October 2023.

Now

It showed that large takeovers can survive intense scrutiny when the buyer and target hold firm.

Why this matters now

Brookfield's bid faces a similar gauntlet of shareholder, court and regulatory approvals; the Activision case illustrates how long that process can take.

Sources

(14)
+8
Australian Financial Review Reliance Worldwide ASX announcement Reliance Worldwide Reuters Bloomberg Kalkine TradeVulcan Law360 Australia Business Standard TipRanks inkl Reliance Worldwide ASX announcement Reliance Worldwide Reliance Worldwide