wesfarmers (ASX:WES) has agreed to sell its core gas business to a subsidiary of Nippon Sanso Holdings (NSHD) for $770 million.

Following completion of the sale, Wesfarmers expects to record a pre-tax profit of $230 million to $260 million, subject to closing adjustments. The sale is subject to approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

Subject to the satisfaction of all conditions, the sale is expected to close by mid-2025.

Coregas is part of Wesfarmers’ industrial safety division and is one of Australia’s largest manufacturers and suppliers of industrial, medical and specialty gases. The company distributes gas in cylinders, providing bulk gas to medium to large-scale users across Australia and New Zealand.

Nippon Sanso Holdings (NSHD), listed on the Tokyo Stock Exchange, is the world’s fourth largest supplier of industrial, electronic and medical gases, with operations in more than 30 countries. In Australia, its wholly owned subsidiary Supagas Pty Ltd is a leading supplier of liquefied petroleum gas and gas.

Wesfarmers Managing Director Rob Scott commented: “We believe this sale is in the best interest of Wesfarmers shareholders and is consistent with our disciplined focus on portfolio management.”

Wesfarmers’ Industrial and Safety division will continue to operate the Blackwoods and Workwear Group businesses. The segment, excluding core gas, recorded a pre-tax profit of $72 million in fiscal year 2024.

Wesfarmers shares are trading 2.25% lower at $71.57.