The Wesfarmers Ltd (ASX: WES) share price has had a tremendous month thus far.
Since the start of July, shares in Wesfarmers have soared around 7% and are currently trading near record highs.
There have been several catalysts that have made Wesfarmers a top performer on the S&P/ASX 200 Index (ASX: XJO).
Let's take a look at what's propelled the Wesfarmers share price.
Investors embracing Wesfarmers strategy
With the Wesfarmers share price trading at record highs, it can be assumed that investors are embracing the conglomerate's ambitious growth strategy.
The company recently reiterated its priorities of investing in new growth platforms and selling unwanted assets.
Wesfarmers, which operates household banners such as Bunnings, K-Mart, Officeworks and Target plans to leverage and scale its unique assets.
In addition, Wesfarmers has also managed to divest its coal business and expand into the burgeoning lithium sector. Recently, the company's Mt Holland lithium project received ministerial approval.
Earlier this year, Wesfarmers demonstrated the potential of its growth strategy by reporting strong half year results.
The company delivered a 25.5% increase in net profit after tax of $1,414 million. This was fuelled by a 16.6% increase in revenue for the 6 months of $17,774 million.
Wesfarmers plans expansion into pharmaceuticals
The Wesfarmers share price recently received a boost following its proposed expansion into the pharmaceutical sector.
Earlier this month, the company launched a $687 million offer for Australian Pharmaceutical Industries Ltd (ASX: API).
The offer slated by Wesfarmers is to acquire 100% of API's shares outstanding for $1.38 cash per share by way of a scheme for arrangement.
Wesfarmers management cited that the proposed acquisition of API would provide the company an attractive opportunity to enter the $25 billion pharmaceutical, beauty and wellbeing sector.
Wesfarmers cited the strong competitive position of API and intends to bring its capital and unique capabilities to support further investment.
The deal is subject to due diligence, ACCC clearance and approval from the API board and shareholders
Snapshot of the Wesfarmers share price
As highlighted earlier, the Wesfarmers share price has stormed around 7% higher in July to record highs. Overall, shares in Australia's second largest retailer have soared around 22% higher since the start of the year.
