Wesfarmers Agrees to Sell Coregas to Nippon Sanso Holdings for AU$770Mn

2 min read | December 20, 2024 02:25 PM AEDT | By Team Kalkine Media

Wesfarmers Agrees to Sell Coregas to Nippon Sanso Holdings for AU$770Mn — Image source: © Mohammedsoliman4 | Megapixl.com

Financial and Strategic Impact

The deal is expected to result in a pre-tax profit of approximately $230 million to $260 million for Wesfarmers, though the final amount will depend on completion adjustments. Wesfarmers anticipates that the sale will close by mid-2025, subject to necessary regulatory approvals, including from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

Coregas is one of Australia’s largest manufacturers and suppliers of industrial gases, offering a variety of gases, including industrial, medical, and specialty gases in both cylinder and bulk formats across Australia and New Zealand.

Nippon Sanso Holdings Corporation

NSHD, headquartered in Japan and listed on the Tokyo Stock Exchange, is the world’s fourth-largest supplier of industrial, electronic, and medical gases, operating in over 30 countries. In Australia, NSHD’s subsidiary Supagas Pty Limited is a prominent supplier of liquefied petroleum gas, industrial, medical, specialty, and helium gases.

Wesfarmers’ Future Focus

Wesfarmers Managing Director Rob Scott emphasized that the sale of Coregas recognizes the strong growth and success of the business in the industrial gas markets. Excluding Coregas, Wesfarmers’ remaining businesses in the Industrial and Safety division generated earnings before tax of $72 million in the 2024 financial year.

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