By Scott Murdoch
SYDNEY, Aug 18 (Reuters) - Global private equity giant Brookfield is taking a fourth shot at buying Australian plumbing supplies group Reliance Worldwide, raising its bid to A$4.1 billion ($2.91 billion) despite a major profit slump and uncertain business outlook created by tariffs and volatile housing activity.
Reliance announced on Tuesday it had granted Brookfield due diligence access for up to eight weeks after tabling its most recent bid of A$4.75 per share.
The takeover target
said Brookfield had made a series of all-cash indicative offers in April and May starting at A$4.15, before rising to A$4.25 and A$4.50 a share. Brookfield declined to comment on the bid.
Reliance shares rose on Tuesday 24% to A$4.48, the highest level in more than a year, but still traded below the Brookfield offer.
Reliance said its full-year net profit fell to $6.3 million in 2026, down from $125 million one-year earlier. The company said the sharp slide was the result of a $103.3 million write-down taken on the closure of an Asia Pacific metals manufacturing facility.
A majority of Reliance's profit is generated in North America, where Chief Executive Heath Sharp said the business's prospects had been hard hit by tariffs. A more-than-40% increase in copper prices had also hurt Reliance, he said.
"The last few years have been really bloody tough," Sharp told Reuters in an interview.
"Our people have mobilized to deal with what they've had to face and will continue to do that regardless of ownership structure. We'll do what we have to do. We believe in our strategy, we'll get on with it."
Reliance has appointed Goldman Sachs and Oaktower Partnership as financial advisers for the proposal.
($1 = 1.4092 Australian dollars)
(Reporting by Scott Murdoch, additional reporting Shivangi Lahiri in Bengaluru; Editing by Diti Pujara and Saad Sayeed)
