Citi sees upside in Australia's Reliance Worldwide on potential new buyout bids

Reliance Worldwide

29/09/2026 21:01

** Citi sees short-term upside on Australia's Reliance Worldwide Corp RWC.AX
** Brokerage says investors can participate in the upside of a potential competing offer in the coming weeks
** In mid-September,  the plumbing supplies co said it would back an almost $2.9 billion buyout from global investment firm Brookfield
** The companies had agreed to a "Go Shop" provision that allows RWC to seek rival bids, share due-diligence materials and negotiate terms; Brookfield has the right to at least match any new offer
** Citi says the provision and confirmation of "multiple other inbounds", mentioned in co's FY26 earnings call, signal reasonable possibility of a competing bid in the coming weeks
** Says RWC's past acquisitions have generated positive cost synergies, making it lucrative for potential buyers
** Avg rating of 13 analysts suggest "hold"; their median PT is A$4.75, according to data compiled by LSEG
** YTD, stock up more than 22%, as of co's last close
     
     

(Reporting by Aamir Sheik Khalid in Bengaluru)
((Aamir.SheikKhalid@thomsonreuters.com))