Brookfield’s $2.9 Billion Proposal Is Aimed at Australia’s Reliance Once More

Despite a decline in profits and an uncertain business outlook for the Australian plumbing supplies group due to tariffs and unstable housing activity, global investment firm Brookfield (BN.TO) is making a fourth attempt to acquire Reliance Worldwide (RWC.AX) with a A$4.1 billion ($2.91 billion) bid.

After submitting its most recent proposal of A$4.75 per share, Reliance said on Tuesday that it has given Brookfield Capital Partners LLC due-diligence access for a maximum of eight weeks.

According to the takeover target, Brookfield made several all-cash indicative offers in April and May, beginning at A$4.15 and increasing to A$4.25 and A$4.50 per share. Regarding the bid, Brookfield declined to comment.

According to the firm, Brookfield’s offer is 31.6% more than Reliance’s closing share price on Monday and is up 5.5% from its previous one.

Tuesday’s closing price of A$4.50, the highest level in almost a year, saw Reliance shares rise nearly 25%, although they were still below the Brookfield offer.

Reliance said that its full-year net profit dropped from $125 million to $6.3 million in the 2026 fiscal year that ended on June 30. The company claimed that a $103.3 million write-down on the closing of an Asia Pacific metals manufacturing unit was the cause of the steep decline.

The majority of Reliance’s profits are made in North America, where tariffs have negatively impacted the company’s prospects, according to Chief Executive Heath Sharp. According to him, Reliance was also negatively impacted by a more than 40% rise in copper prices.

Goldman Sachs and Oaktower Partnership have been designated by Reliance as the proposal’s financial advisors.