BN•BN•Reliance Worldwide RWC.AX said it agreed to a roughly $2.9 billion buyout from global investment firm Brookfield BN.TO, a reprieve for the Australian plumbing supplies company that is facing the impact of U.S. tariffs and economic uncertainty.
Shares of Reliance Worldwide jumped more than 7% in early trade on Wednesday to A$4.65 as of 0015 GMT, their highest level since May last year.
"The board is unanimous in its view that this transaction is in the best interests of RWC shareholders," said Reliance Worldwide Chair Russell Chenu in a statement.
"The board also considered the execution risk to deliver future growth, as well as the broader macroeconomic and geopolitical environment, against the certainty of value delivered by the cash consideration."
Reliance depends on North America for the majority of its profits, where CEO Heath Sharp said the business's prospects had been hard hit by tariffs.
The company's Americas sales slipped 4% in fiscal 2026, while adjusted operating earnings fell more than 11% due to the impact of U.S. tariffs, lower volumes and higher input costs.
Brookfield made three approaches in the first half of the year before returning in August with a fourth, worth A$4.75 a share.
"Reliance is the type of business we look for — a global, market-leading industrial company with strong brands, durable customer relationships and clear opportunities to create value through investment in operations and continued product expansion," Brookfield said in a separate statement.
The companies had agreed to a "Go Shop" provision, allowing Reliance Worldwide to seek rival bids, share due-diligence materials and negotiate terms.
