UPDATE 3pm: Wesfarmers says it has cleared all regulatory hurdles for the $1 billion sale of its insurance broking and premium funding operations to US group Arthur J. Gallagher & Co.
The deal is expected to settle on or before June 30.
Wesfarmers managing director Richard Goyder said the transaction would deliver value to our shareholders and would afford customers and employees of the insurance broking and premium funding businesses the opportunity to join a leading global insurance broking company with ambitions to expand in Australia and New Zealand.
Wesfarmers announced in April that it had agreed to sell the insurance broking and premium funding operations of its insurance division to subsidiaries of Arthur J. Gallagher & Co for $1 billion.
In addition to the purchase price, Wesfarmers will receive a distribution of about $150 million to repay funding of the premium funding operations.
On completion of the transaction, Wesfarmers expects to record a pre-tax profit on sale of about $310 to $335 million, which will be included in its 2014 full-year results.
Wesfarmers shares closed off 21 cents at $41.61 in a broadly weaker market.