Wesfarmers sells Coregas to Nippon Sanso for $480 million, shares fall

From Investing.com: 2024-12-19 20:23:34

Wesfarmers Ltd is selling its industrial gas supply arm, Coregas, to Nippon Sanso Corp for A$770 million. The sale is expected to generate a pre-tax profit of A$230-260 million for Wesfarmers. Coregas is a major player in Australia’s industrial gas market, supplying a variety of gases to customers in the region.

Following the announcement, Wesfarmers shares dropped 2.9% to A$71.04, hitting their lowest point since November 29. The broader Australian benchmark index also saw a 1% decline. The sale of Coregas is set to be finalized by mid-2025, according to Wesfarmers.

Wesfarmers’ Managing Director, Rob Scott, believes that the sale of Coregas will provide value for shareholders and recognize the company’s growth in the industrial gases sector. The move highlights Wesfarmers’ strategic focus on maximizing shareholder value and optimizing its business portfolio for future growth.



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