Brookfield clears go‑shop hurdle as no rival bids emerge for Reliance Worldwide

What Happened

Brookfield Capital Partners' plan to buy Reliance Worldwide Ltd has cleared the go‑shop stage with no competing offer, so the board again urges shareholders to approve the deal. The scheme, agreed in September, sets the cash purchase price at US$3.38 per share, valuing the Australian plumbing‑supplies company at about $2.53 billion. Using the 16 October exchange rate, the price works out to roughly A$4.87 per share.

Board Stance

Reliance said extensive engagement with potential buyers took place during the go‑shop, but no proposal was received. After the go‑shop, standard no‑shop, no‑talk and no‑due‑diligence restrictions under the scheme deed have kicked in. The board’s unanimous recommendation is that shareholders vote in favour of the scheme, citing the absence of a superior proposal. Investors can choose payment in US dollars or Australian dollars if the deal is approved, letting them lock in the amount they prefer amid fluctuating exchange rates.

Context

The go‑shop provision is uncommon in Australian takeovers, allowing the target to test the market for higher offers. Its failure to attract a rival bid strengthens Brookfield’s position and clears a key regulatory hurdle.