Brookfield wins Reliance board backing
Tariffs cited in board’s rationale
Reliance’s Americas sales fell 4% and adjusted earnings before interest, taxes, depreciation and amortization dropped 12.8% in its 2026 financial year, which the company attributed to US tariffs, lower volumes and higher input costs. Reliance depends on North America for the majority of its profit, and chief executive Heath Sharp said the business’s prospects had been hard hit by tariffs, according to the Globe and Mail.
Reliance chairman Russell Chenu said “this Transaction is in the best interests of RWC shareholders.” Anuj Ranjan, chief executive of Brookfield’s Private Equity group, described Reliance as “a global, market-leading industrial company with strong brands, durable customer relationships.”
Shares in Reliance rose as much as 7% to A$4.65 in early Sydney trading – the highest intraday level since May 2025 – before closing 3.5% higher.
Go-shop clause and pension fund history raise doubt
The agreement includes a 30-day “go-shop” provision, unusual in Australian takeovers, running until Oct. 15 and allowing Reliance to solicit rival bids; Brookfield retains the right to match any superior offer, according to Reuters. Grant Thornton has been appointed independent expert, with its opinion on the deal expected in November.
AustralianSuper and Aware Super together hold about 20.2% of Reliance and will have a significant say in the deal’s approval. AustralianSuper twice increased its Reliance stake following the August proposal, moving from 10.94% to 16.68%, according to ION Analytics, which some reports highlighting Reliance and Brookfield were uncertain of the fund’s motives.
