Synlait Milk Limited

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DecisionConsent granted
Section 12(a) Overseas Investment Act 2005
Decision date2 December 2011
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of a freehold interest in 48.5117 hectares of land at 1028 Heslerton Road, Dunsandel.
Consideration$1,111,111
ApplicantSynlait Milk Limited
Bright Dairy and Food Co., Ltd, China, People's Republic of (51.0%)
New Zealand Public (36.9803%)
Japanese Public (12.0197%)
VendorSynlait Farms Limited
New Zealand Public (75.47%)
Japanese Public (24.53%)
Background

Synlait Milk Limited (Synlait) proposes to acquire the freehold of the land at Dunsandel which it currently leases. The land is the site of Synlait’s milk processing facility. Obtaining long term control of the land will give Synlait a solid basis and secure position on which to continue building its business to a level that will be of substantial benefit to Canterbury and New Zealand.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
  • 17(2)(a)(i) – Creation/Retention of jobs
  • 17(2)(a)(iii) – Increased export receipts
  • 17(2)(a)(iv) – Added market competition/productivity
  • 17(2)(a)(v) – Additional investment for development purposes
  • 17(2)(a)(vi) – Increased processing of primary products
Overseas Investment Regulations 2005
  • 28(a) – Consequential Benefits
  • 28(e) – Previous investments
  • 28(g) – Enhance the viability of other investments
  • 28(i) – Economic Interests
  • 28(j) – Mitigating Factor
More informationAmanda Spratt
Minter Ellison Rudd Watts (Auckland)
PO Box 3798
AUCKLAND 1140

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