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Brookfield's Reliance Worldwide takeover clears go-shop hurdle

Brookfield's Reliance Worldwide takeover clears go-shop hurdle

Money Moves

A$4.75 per share cash offer moves to the shareholder vote after the rival-bid window closes

Today: Brookfield clears go-shop hurdle

Overview

Updated 56 minutes ago

Brookfield's A$4.1 billion bid for Reliance Worldwide cleared its last open hurdle on October 16, when the go-shop window shut with no competing offer. The Canadian asset manager can now campaign for shareholder votes on its A$4.75 per share cash scheme.

The deal values the Australian Securities Exchange (ASX) listed plumbing fittings maker — owner of the SharkBite push-to-connect brand — at roughly A$4.1 billion. Completion still requires shareholder, court and regulatory approval; the company expects implementation in the first quarter of 2027.

Why it matters

Reliance Worldwide shareholders get A$4.75 per share — a 31.6% premium over the pre-bid close — as Brookfield takes the plumbing fittings maker private.

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Key Indicators

31.6%
Premium over pre-bid close
A$4.75 offer versus A$3.61 closing price on August 17, 2026.
$25.3M
Break fee
Payable by either side in certain circumstances under the Scheme Implementation Deed.
A$4.75
Cash offer per share
All-cash scheme of arrangement price for 100% of Reliance Worldwide ordinary shares.
12.1x
EV/EBITDA multiple
Transaction multiple on fiscal 2026 adjusted EBITDA, post-AASB16 basis.

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People Involved

Organizations Involved

Timeline

April 2026 October 2026

7 events Latest: Today
Tap a bar to jump to that date
  1. Brookfield clears go-shop hurdle

    Today Milestone

    Brookfield's bid survives the go-shop; focus shifts to securing shareholder votes.

  2. Go-shop period expires

    Milestone

    The 30-day rival-bid window closes at 11:59pm Melbourne time with no competing offer.

  3. Scheme deed signed, go-shop opens

    Agreement

    Brookfield and RWC sign a Scheme Implementation Deed; shares jump over 7%.

  4. RWC signs process deed at A$4.75

    Agreement

    RWC enters a process deed with Brookfield; A$4.75 offer carries a 31.6% premium.

  5. RWC shares close at A$3.61

    Market

    Reliance Worldwide closes the day before bid talks were disclosed.

  6. Brookfield raises its offer

    Proposal

    Brookfield lifts the proposal to A$4.25 then A$4.50 per share.

  7. Brookfield makes first approach

    Proposal

    Brookfield submits an unsolicited cash proposal at A$4.15 per share.

Scenarios

1

Brookfield completes A$4.75 per share takeover of Reliance Worldwide

Likely Resolves by Q1 2027

Discussed by: AFR Street Talk and Reuters, both reporting the deal moving toward completion

With the go-shop closed, Brookfield campaigns for shareholder votes and clears court and regulatory approvals. Reliance Worldwide expects implementation in Q1 2027. If completion slips past March 31, 2027, Brookfield pays a ticking fee of 0.0263 US cents per share per day.

2

Reliance Worldwide shareholders reject Brookfield's scheme

Unlikely Resolves by Q1 2027

Discussed by: Kalkine and Law360 Australia, noting the board's backing but the floor left open for rivals

The scheme fails if shareholders vote it down at the scheme meeting, or if a rival bidder tops Brookfield before the vote. Deal protections make this hard: Brookfield holds a matching right and would collect a US$25.3 million break fee if RWC walked away. A negative independent expert report could also sink it.

3

Regulatory or court delays push completion past Q1 2027

Possible Resolves by Q2 2027

Discussed by: Reliance Worldwide's own scheme deed announcement, which flags the Q1 2027 date as indicative

The scheme requires court sanction, regulatory approvals and no material adverse change before the second court date. Any of these could slip the current target. If completion lands after March 31, 2027, Brookfield pays the ticking fee but the deal continues.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

February–October 2013

Dell going private (2013)

Founder Michael Dell and Silver Lake agreed to take the computer maker private. A go-shop window let rival bidders step forward, and investor Carl Icahn pushed for a higher price, forcing the offer up before it closed.

Then

The deal closed in October 2013 after the price was raised to win over holdout shareholders.

Now

It became a template for how a go-shop window and activist pressure can reshape price even after a deal is signed.

Why this matters now

Like Dell, Reliance Worldwide runs a go-shop window that invites rival bids; the Dell case shows such windows rarely produce a rival but can still shape the final terms.

January 2022 – October 2023

Microsoft–Activision Blizzard (2022–2023)

Microsoft agreed to buy game maker Activision Blizzard for US$68.7 billion in cash, a cross-border mega-deal that needed approvals from regulators in the US, UK and EU.

Then

After a year of regulatory battles, the deal closed in October 2023.

Now

It showed that large takeovers can survive intense scrutiny when the buyer and target hold firm.

Why this matters now

Brookfield's bid faces a similar gauntlet of shareholder, court and regulatory approvals; the Activision case illustrates how long that process can take.

Sources

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