Global investment giant Brookfield has finally landed Reliance Worldwide, agreeing to pay more than $4 billion for the Australian plumbing supplies business after sweetening its offer four times.

Brookfield will pay $4.75 a share in cash, up from its first offer of $4.15 in April. Reliance shares jumped 3.5 per cent yesterday.

The deal isn’t completely watertight just yet. Reliance, best known for its SharkBite push-to-connect plumbing fittings, has negotiated a “go shop” period until October 15, allowing it to seek a better offer.

Reliance generates about 55 per cent of its sales in the US, where profits have been squeezed by tariffs, high copper prices and weak housing markets.

It’s also the latest in a burst of Australian dealmaking. Recent transactions have involved Chemist Warehouse and Sigma Healthcare, Soul Patts and Brickworks, Qube, Insignia Financial and Johns Lyng, while Austal’s US operations and parts of Rio Tinto’s Pilbara infrastructure are also attracting interest.

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Greed-o-meter

Higher oil prices are hitting household budgets at the bowser. The average Australian household with a petrol car is now spending around $127 a week on fuel - about $20 more than before the war in the Middle East. Today's chart from AMP shows the rise in the cost of filling a 60-litre petrol tank from the late 90s to now.

Source: AMP, Bloomberg

Fear & Greed Q+A today

Recorded live at Class Ignite 2026, Sean Aylmer speaks with Class CEO Tim Steele, SMSF Association CEO Peter Burgess and Heffron MD Meg Heffron about the Class 2026 Annual Benchmark Report and what it reveals about the changing SMSF landscape:

 

SMSFs are booming: more than 52,000 new SMSFs were established last financial year – the highest number on record. There are now more than 680,000 SMSFs holding over $1.1 trillion.

 

It’s not just older Australians: Gen X and Millennials accounted for almost 90% of newly established SMSFs, with the average new member aged 47.

 

There’s much more money flowing in than out: between FY23 and FY26, $14.4 billion was rolled into Class SMSFs, around 2.5 times the $5.7 billion rolled out.

 

There’s a fascinating split in where the money moves: industry funds accounted for 57% of rollover inflows into SMSFs, while retail funds received 67% of rollover outflows.

News in brief

Migration: The Albanese government is set to announce plans aimed at bringing net migration down from 306,000 to 245,000 this year and 225,000 thereafter, with international students, temporary skilled migrants and visa overstayers among the areas in focus.

Markets: The ASX 200 rose 0.3 per cent to 8696.5, helped by energy stocks as Brent crude remained around $US108 a barrel. Investors were also awaiting the US Federal Reserve’s latest interest rate decision.

Iron ore: Iron ore futures have dropped almost 5 per cent over the past week to around $US96 a tonne as Chinese steelmakers cut production. ANZ expects prices around $US90 to $US95 for the rest of the year.

Universities: Universities are increasingly looking to their vast land holdings for new revenue, with plans for housing, hospitals and even retirement villages. The University of Canberra’s $5 billion master plan includes a 180-bed aged care home.

Online creators: Six in ten Australians now discover brands through online creators, rising to 85 per cent among people under 40. IAB Australia says credibility and expertise matter more to consumers than simply having a huge audience.

Medical: Health regulators are cracking down on high-volume prescribing, including businesses focused on weight-loss drugs, medicinal cannabis and other treatments. Unusual prescribing patterns could now trigger an investigation even without a patient complaint.

Fear-o-meter

CPA Australia on the state of the superannuation system:

Superannuation Lead Richard Webb believes the New Retirement Standard From ASFA comes amid concerns that many retirees are reluctant to draw on their super savings, despite Australia managing one of the world's largest retirement asset pools.

Mr Webb said Australia's superannuation system had delivered impressive results – helping build a retirement savings pool of around $4.5 trillion, but the retirement phase remained a major weakness.

"For all the success of Australia's superannuation system in building one of the world's largest pools of retirement savings, the industry continues to struggle with the most important transition of all: paying members an income when they retire.

"The uncomfortable reality is that super funds have become very good at collecting contributions and growing balances, but far less effective at helping retirees convert those balances into sustainable income streams that they feel comfortable spending.

"This is not just a superannuation issue. It's an economic issue. There’s a risk that trillions of dollars remain locked away in retirement savings simply because the onus is on retirees to switch their retirement income on.

"If Australians are overwhelmed with paperwork when attempting to draw down their super, our economy misses out on spending, investment and productive growth."

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