Investing.com- Australian Wesfarmers Ltd (ASX:) will sell its industrial gas business Coregas to the unit of Japanese multinational Nippon Sanso Corp (TYO:) for A$770 million ($480.33 million), the conglomerate said on Friday.
Upon successful completion of the transaction, Wesfarmers expects to make a pre-tax profit of between A$230 million and A$260 million from the sale.
According to the company, Coregas is part of the Wesfarmers Industrial and Safety division and one of Australia’s largest producers and suppliers of industrial gases.
The company distributes industrial, medical and specialty gases in cylinders and offers a wide range of bulk gases to medium and vast users in Australia and New Zealand.
Wesfarmer shares fell 2.9% to A$71.04, their lowest level since November 29. The broader Australian benchmark index was also down 1% as of 01:13 GMT.
Wesfarmers expects the sale of Coregas to be completed by mid-calendar year 2025, the company added.
The sale agreement for Coregas delivers value for shareholders and reflects the robust growth achieved by Coregas in the industrial gas markets in Australia and New Zealand, said Rob Scott, managing director of Wesfarmers.
