Reliance Worldwide (ASX:RWC) Surges 24.52% as Brookfield Raises Cash Proposal to AUD 4.75

Aditi Sarkar

18 August 2026 02:22 PM AEST

Reliance Worldwide (ASX:RWC) Surges 24.52% as Brookfield Raises Cash Proposal to AUD 4.75

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Highlights

Reliance Worldwide (ASX:RWC) surged 24.52% after Brookfield raised its Takeover proposal.
Brookfield is proposing AUD 4.75 per share in cash.
The proposal implies an Enterprise value of about AUD 4.1bn and Equity value of about AUD 3.55bn.
FY26 net sales slipped 0.7% to US$1.3bn while adjusted net profit fell 15.3% to US$125.1mn.

Reliance Worldwide Corporation (ASX:RWC) has surged 24.52% after Brookfield Capital Partners increased its indicative cash proposal to AUD 4.75 per share. The approach puts the plumbing-products group into a takeover-driven phase at the same time as FY26 results show softer operating performance. That contrast is now central to the story: Brookfield sees strategic value in the Business even as Reliance works through weaker demand, tariffs and higher input costs.

Brookfield Raises the Price

Brookfield’s latest proposal values Reliance at about AUD 3.55bn on an equity basis and around AUD 4.1bn including debt.

The AUD 4.75 cash proposal follows earlier offers of AUD 4.15, AUD 4.25 and AUD 4.50 per share.

Process Deed Moves Negotiations Forward

Reliance has entered into a process deed with Brookfield. The arrangement includes a four-week exclusivity period from 17 August to 15 September while Brookfield progresses Due Diligence and internal approvals.

FY26 Results Add Operating Context

The takeover interest comes as Reliance faces pressure from weaker Demand and rising costs. FY26 net sales fell 0.7% to US$1.3bn, while adjusted net profit declined 15.3% to US$125.1mn.

That makes the proposal particularly important because the market is now weighing transaction value against a softer standalone Earnings profile.

What to Watch

The key development is whether Brookfield converts the proposal into a binding scheme implementation deed. Any competing approach or revised terms would also be material.

Risks

The takeover is not complete. Due diligence, Brookfield approvals and transaction documentation remain outstanding. If the deal fails, attention may return quickly to the weaker FY26 earnings base.

FAQs

Q:What is Brookfield offering for Reliance Worldwide?

A:Brookfield has proposed AUD 4.75 per share in cash.

Q:What enterprise value does the proposal imply?

A:Around AUD 4.1bn including debt.

Q:Is the transaction binding?

A:Not yet. The parties are progressing the proposal under a process deed.

Q:How did adjusted net profit perform in FY26?

A:It fell 15.3% to US$125.1mn.

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