Wesfarmers has completed the $350 million sale of Kmart Tyre and Auto to German manufacturer Continental AG.
The retail conglomerate announced on Thursday that the deal, initially unveiled on August 12, had been finalised and would add $270 million in pre-tax profit to the group’s 2019 half-year results.
Wesfarmers managing director Rob Scott said the sale of Kmart Tyre and Auto was in the best interests of shareholders.
‘With the sale now complete, I again thank the KTAS team for their efforts in growing and improving the business under Wesfarmers’ ownership and for their focus and commitment during the transition to new ownership,’ Mr Scott said.
Wesfarmers shareholders will vote at the annual general meeting on November 15 on whether the $20 billion demerger of supermarket chain Coles will proceed.
In June it announced it was selling its 40 per cent interest in the Bengalla Joint Venture thermal coal mine project to partner New Hope Corporation Ltd for $860 million.
Wesfarmers suffered a 58 per cent drop in 2017/18 net profit after taking more than $1.3 billion in costs and losses on its disastrous Bunnings UK exit and a $300 million writedown on underperforming Target stores.