Wesfarmers to sell Coregas to Nippon Sanso for $653m

The sale is expected to be completed by mid-2025.

Wesfarmers is expecting to earn a pre-tax profit of approximately $195m (A$230m) to $220m (A$260m) from the sale of its Coregas business to a subsidiary of Nippon Sanso Holdings Corporation (NSHD).

Wesfarmers sold Coregas for $653m (A$770m). The sale is expected to be completed by mid-2025, subject to the receipt of certain consents and approvals, including from the Australian Competition and Consumer Commission and Foreign Investment Review Board.

Coregas, part of Wesfarmers Industrial and Safety division, supplies industrial, medical, and specialty gases in cylinders and bulk to medium and large users in Australia and New Zealand.

Excluding Coregas, the remaining businesses in the Industrial and Safety division generated earnings before tax of $61m (A$72m) in FY2024.

“We believe the divestment is in the best interests of Wesfarmers shareholders and is consistent with our disciplined focus on portfolio management. The sale gives customers and team members of Coregas the opportunity to join an established business in NSHD, which has global expertise owning and operating successful industrial gas businesses,” Rob Scott, managing director of Wesfarmers said.