Reliance Worldwide Corporation Ltd (ASX: RWC) shares are having another strong session on Wednesday.
The stock is up 4.39% to $4.52 at the time of writing after trading as high as $4.65 earlier this morning.
That's a new 52-week high, taking Reliance shares up more than 23% over the past month and around 17% in 2026.
The latest rise comes after another major development in the company's takeover talks.
But there could still be more to come over the next few weeks.
Let's dive right in.
Image source: Getty Images
Brookfield locks in the deal
According to the release, Reliance has signed a scheme implementation deed with Brookfield Corp (NYSE: BN).
Under the deal, Brookfield plans to acquire all Reliance shares for US$3.38 each in cash, or around $4.75 per share.
On an enterprise value basis, that values the company at roughly $4.1 billion.
Notably, Brookfield has had to increase its offer a few times to get here.
Its first approach came in at $4.15 per share, followed by offers of $4.25 and then $4.50.
Reliance then gave Brookfield access to non-public information while it carried out due diligence.
After several weeks of that process, Brookfield came back with the higher offer.
The Reliance board is now unanimously backing the deal, provided there is no better proposal and the independent expert gives it the tick.
Chair Russell Chenu said the board had "carefully assessed" the offer, including Reliance's outlook, growth opportunities, and cash generation.
Could another buyer still emerge?
Now, this is where things get a little more interesting.
Reliance has agreed to the Brookfield deal, but it still has the chance to see if someone else is willing to pay more.
The agreement includes a 30-day "go-shop" period, which runs until 15 October.
During that time, Reliance can approach other potential buyers, share due diligence information, and negotiate another proposal.
AustralianSuper is also worth keeping an eye on.
According to The Australian, the super fund recently increased its stake in Reliance to 14.68%.
This means it could have a decent say in how things play out when shareholders eventually vote.
What happens next?
At $4.52, Reliance shares are still trading below the $4.75 value of Brookfield's offer.
And there are a few reasons for that.
The deal still needs shareholder, court, and regulatory approval, while completion isn't expected until the first quarter of 2027.
The final value could also move around because the offer is being paid in US dollars.
So, clearly there's still a few hurdles to get through.
