Wesfarmers to buy Bullivants, Linde acquisition gets ACCC tick

Wesfarmers' acquisition trail continues, winning approval from the Australian Competition and Consumer Commission for Linde Gas Ltd bid, and announcing the acquisition of industrial supply company Bullivants on the same day.

The industrial giant agreed to acquire Linde last month for $500 million, after paying $700 million in September for insurance broker OAMPS.

Last month Wesfarmers said it was likely to seek more capital from investors through a dividend reinvestment scheme if the proposal won ACCC approval.

The Linde specialty gas business was bought from giant the Linde Group, which was forced to divest its Australian gas arm by the ACCC, following its merger with the BOC Group plc.

Wesfarmers managing director Richard Goyder said at the time that the potential acquisition would be part of the company's newly constituted Wesfarmers energy division.

The Bullivants acquisition was made by Wesfarmers' industrial and safety division, and follows an extensive restructuring of the division following an extensive restructure of the division, according to the division's managing director, Terry Bowen.

"As Australia's pre-eminent lifting, rigging and materials handling specialist, Bullivants is a very strong brand and gives us the ability to better service many of our existing customers by providing a broader and better range of products and services to meet hteir materials handling and lifting needs," he said.

The full text of a company announcement is pasted below

The Australian Competition and Consumer Commission has advised, in response to Wesfarmers' application for informal clearance, that it does not intend to oppose the proposed acquisition by Wesfarmers of Linde Gas Pty Ltd. The proposed acquisition was announced by Wesfarmers on 27 November 2006.

The agreement relating to the transaction has now been finalised with Linde AG, and completion is subject only to the ACCC formally approving Wesfarmers as purchaser under the terms of the undertaking that Linde AG has agreed with the ACCC and there being no
material adverse change to the business. The outstanding ACCC approval is to be determined on substantially the same basis as the clearance already granted by the ACCC.

Subject to receipt of this approval, Wesfarmers expects to be able to complete the transaction at the beginning of February 2007.