Overseas investment decision for case 201810160 - Mercury Agriculture LP

Consent is declined under the Overseas Investment Act 2005 to Mercury Agriculture Ltd Partnership to give effect to an overseas investment in sensitive land and significant business assets, being the acquisition of up to a 68.3% interest in Rangitata Dairies Limited Partnership and Rangitata GP Limited which has:

• a freehold interest in approximately 1,912 hectares of land at Rangitata, Geraldine; and
• a freehold interest in approximately 212 hectares of land at Temuka; and
• a freehold interest in approximately 1,002 hectares of land at Ashburton; and
• a freehold interest in approximately 816 hectares of land at Cromwell; and
• a leasehold interest in approximately 12 hectares of land located at Rangitata, Geraldine; and
• a leasehold interest in approximately 108 hectares of land located at Temuka; and
• a leasehold interest in approximately 492 hectares of land located at Ashburton.

The Applicant is a New Zealand registered limited partnership incorporated to hold the proposed Investment. It is an investment vehicle for Fiera Comox Partners Inc which has established a fund to invest in agricultural land and rural producing assets in New Zealand, Australia, Canada and the USA.

Rangitata Dairies Limited Partnership owns 8 dairy farms in South Canterbury, a dairy support farm in Otago and leased farmland used as dairy support in Canterbury. Rangitata Dairies Limited Partnership intended to use the subscription price for the Investment to convert 111 hectares of farmland into an orchard planting permanent crops and install irrigation and in-shed feeding on certain of the dairy farms.

For consent to be granted, Ministers’ needed to be satisfied that the Investment would result in substantial and identifiable benefit to New Zealand. Both Minister Sage and Minister Clark were not satisfied that the investment would result in a substantial and identifiable benefit to New Zealand.