Brookfield Asset Management has reached an agreement to acquire Reliance Worldwide Corp. in an all-cash transaction that values the Australian piping products manufacturer at roughly A$4.1 billion (US$2.9 billion). The deal comes after three earlier approaches from the asset manager were rebuffed during the first half of the year.

Reliance Worldwide Chairman Russell Chenu stated in a release: "The board unanimously determined that this transaction is in the best interests of RWC shareholders." He added, "The board also weighed the execution risks associated with realizing future growth alongside the broader macroeconomic and geopolitical landscape, balancing these against the certainty of value offered by the cash consideration."

Notably, Reliance derives the majority of its profits from the North American market. Chief Executive Heath Sharp indicated that the business outlook has been significantly impacted by tariffs. In fiscal 2026, the company's Americas segment experienced a 4% decline in sales, with adjusted operating profit dropping over 11%, attributed to the effects of US tariffs, lower volumes, and rising input costs.

Where the deal stands

Brookfield made three separate takeover proposals during the first half of the year before submitting its fourth offer in August at A$4.75 per share, representing a 32% premium over the closing price on August 17. The asset manager described the target in a separate statement: "Reliance represents exactly the type of business we seek—a global industrial leader with strong brands, enduring customer relationships, and clear opportunities to create value through continued investment in operations and product expansion."

Strategic significance

The acquisition of Reliance Worldwide gives Brookfield entry into the US construction and residential markets, which account for approximately 60% of Reliance's revenue, with the remainder spread across Asia-Pacific, Europe, and the Middle East. The Australian company, whose history dates back to 1949, is best known for its SharkBite push-to-connect pipe fittings, which require no specialized tools for installation.

Brookfield maintains an extensive portfolio of assets in Australia spanning real estate, infrastructure, and private equity. In December, it partnered with Singapore's GIC Pte to agree on acquiring National Storage REIT, and it also owns electricity and gas distribution network AusNet Services alongside fiber-optic cable company Uniti.

The two parties have agreed to include customary "go-shop" provisions that allow Reliance Worldwide to seek competing offers, share due diligence materials, and negotiate terms. Goldman Sachs is serving as financial advisor to Reliance Worldwide.