The fourth move was finally approved! Brookfield (BAM.US) buys Australian pipeline products manufacturer RWC for US$2.9 billion, with a 32% premium

The Zhitong Finance App learned that Brookfield Asset Management (BAM.US) has agreed to acquire Reliance Worldwide Corp. on an all-cash basis. The deal valued the Australian pipeline products company at about 4.1 billion Australian dollars (2.9 billion US dollars).

Reliance Worldwide Chairman Russell Chen said in a statement: “The Board is in agreement that this deal is in the best interest of RWC shareholders.”

“The board also considered execution risks to achieve future growth, as well as the broader macroeconomic and geopolitical environment, and weighed this against the definitive value of cash consideration.”

According to information, Reliance's profits are mostly dependent on the North American market. CEO Heath Sharp said the business's prospects have been hit hard by tariffs. In fiscal year 2026, the company's sales in the Americas fell 4%, and adjusted operating profit fell by more than 11% due to the impact of US tariffs, lower sales volume, and higher investment costs.

Brookfield proposed a takeover three times in the first half of this year, then launched for the fourth time in August. The price was 4.75 Australian dollars per share, a 32% premium over the closing price on August 17.

Brookfield said in another statement: “Reliance is the kind of company we were looking for — a leading global industrial company with a strong brand, long-lasting customer relationships, and clear opportunities to create value through continued investment in operations and product expansion.”

The acquisition of Reliance Worldwide will enable Brookfield to enter the US construction and housing market, which accounts for approximately 60% of Reliance's revenue, with the rest distributed across Asia Pacific, Europe and the Middle East. The Australian company dates back to 1949 and is best known for its Sharkbite push-in pipe fittings, which can be installed without the use of professional tools.

Brookfield has a broad portfolio of assets in Australia, spanning real estate, infrastructure and private equity. In December of last year, the company cooperated with the Singapore Government Investment Corporation (GIC Pte) and agreed to acquire National Storage REIT. It also owns the electricity and gas distribution network AusNet Services and the optical fiber cable company Uniti (UNIT.US).

The two companies have agreed to include a “bid clause” which allows Reliance Worldwide to seek competitive offers, share due diligence materials, and negotiate terms. Goldman Sachs is advising Reliance Worldwide.