Fourth attempt finally approved! Brookfield (BAM.US) acquires Australian pipeline products manufacturer RWC for $2.9 billion, a 32% premium

Zhitong Finance APP has learned that Brookfield Asset Management (BAM.US) has agreed to acquire Reliance Worldwide Corp. in an all-cash deal, valuing the Australian pipe products company at approximately 4.1 billion AUD (2.9 billion USD).

Reliance Worldwide Chairman Russell Chenu stated in a release: “The Board unanimously believes this transaction is in the best interests of RWC shareholders.”

“The Board has also considered the execution risks associated with delivering future growth, as well as the broader macroeconomic and geopolitical environment, and weighed these against the certainty of value provided by the cash consideration.”

It is understood that the majority of Reliance’s profits depend on the North American market. Chief Executive Officer Heath Sharp stated that the outlook for this business has been severely hit by tariffs. In fiscal year 2026, the company’s Americas revenue fell by 4% and adjusted operating profit dropped by more than 11%, due to the impact of US tariffs, falling sales volume, and rising input costs.

This year, Brookfield made three acquisition attempts in the first half, then came forward a fourth time in August, offering 4.75 AUD per share—a 32% premium to the closing price on August 17.

Brookfield said in a separate statement: “Reliance is exactly the type of business we look for—a global leading industrial company with strong brands, enduring customer relationships, and clear opportunities to create value through sustained operational investment and product expansion.”

Acquiring Reliance Worldwide will give Brookfield access to the US construction and residential market, which accounts for about 60% of Reliance’s revenue, with the remainder coming from Asia Pacific, Europe, and the Middle East. The Australian company’s history dates back to 1949, and it is best known for its Sharkbite push-to-connect fittings, which can be installed without the use of specialized tools.

Brookfield holds a broad asset portfolio in Australia, covering real estate, infrastructure, and private equity. In December last year, the company teamed up with GIC Pte of Singapore and agreed to acquire National Storage REIT. It also owns electricity and gas distribution network AusNet Services, as well as fiber optic cable company Uniti (UNIT.US).

The two companies have agreed to enter into “go-shop provisions” that allow Reliance Worldwide to seek competing bids, share due diligence materials, and negotiate terms. Goldman Sachs is advising Reliance Worldwide.