Wesfarmers Ltd (ASX: WES) shares are pushing higher on Friday morning.

At the time of writing, the conglomerate's shares are up down 1% to $72.46.

Why are Wesfarmers shares rising?

Investors have been selling the Bunnings and Kmart owner's shares this morning amid broad market weakness and the announcement of a major asset sale.

According to the release, the company has agreed to sell its Coregas business to a subsidiary of Nippon Sanso Holdings Corporation (NSHD) for $770 million.

Coregas is part of the Wesfarmers Industrial and Safety division and is one of Australia's largest manufacturers and suppliers of industrial gases.

It distributes industrial, medical, and specialty gases in cylinders and offers a wide range of bulk gases for medium to large users across Australia and New Zealand.

The release notes that upon the successful completion of the transaction, Wesfarmers expects to report a pre-tax profit on sale of approximately $230 million to $260 million. This is subject to completion adjustments.

However, there's still approvals that need to be granted before the deal completes. This includes from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB).

If all goes to plan, Wesfarmers expects the sale of Coregas to complete by mid-2025.

What is Coregas?

NSHD is listed on the Tokyo Stock Exchange and is the world's fourth-largest supplier of industrial, electronic and medical gases operating in over 30 countries. In Australia, NSHD's wholly owned subsidiary Supagas is a leading supplier of liquefied petroleum gas, industrial, medical, specialty and helium gases.

Wesfarmers' managing director, Rob Scott, believes the agreement to sell Coregas will deliver value for shareholders and recognises the strong growth delivered by Coregas in the industrial gases markets across Australia and New Zealand.

Commenting on the sale, Scott said:

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.

I thank all the Coregas team for their efforts in significantly growing and improving the business. They should be very proud of the Coregas business and I am confident there will be new opportunities that will arise with NSHD, a global leader in industrial gases.

The company's leader also notes the remaining businesses in the Industrial and Safety division, which includes Blackwoods and Workwear Group, will continue to execute their strategies to create shareholder value. They collectively generated earnings before tax of $72 million in FY 2024.

Wesfarmers shares are up more than 30% over the past 12 months.