Decision number200520073
Application number200520084
Date14 October 2005
Offeror/applicantWoolworths Limited
Ultimate applicant beneficial ownership100 percent - Australia, Australian Public
Beneficial overseas ownership 
- Asset currentN/A
- Asset proposedN/A
- Share current100 percent
- Share proposed100 percent
Offeree(s)/seller(s)Foodland (NZ) Holdings Limited
100 percent - Australia, Foodland Associated Limited
Business activitiesWholesale & Retail Trade - Personal & Household Goods
Details of land involved

99.3468 hectares of leasehold comprising:

  1. 20.8766 hectares situated at 16-24 Anzac Road, Browns Bay; 271 Richmond Road, Grey Lynn; 80-120 Favona Road, Mangere; 311 Penrose Road, Penrose; 2-16 Barrys Point Road, Takapuna; Corner Edmonton and Te Atatu South Roads, Te Atatu; and 528-536 Mt Albert Road, Three Kings, Auckland being CTs NA 1620/37, NA52D/553, NA136C/747, NA136C/748, NA515/68, NA13B/1113, NA13B/1114, NA13B/115, NA13B/116, 49151, 49154, 49155, NA48D/446, NA64A/659, NA934/127, NA57A/791, 73601, NA11D/889, NA12C/1474, NA979/34, NA912/124, NA835/290, NA936/120, NA1538/3, and NA60D/907 (North Auckland Registry);
  2. 76.6908 hectares situated at 91 Hilton Street, Kaiapoi; Two Chain Road, Malvern; and 9 Browne Street, Timaru, Canterbury being CTs CB47D/408, 163301 and CB41D/215 (Canterbury Registry); and
  3. 1.7794 hectares situated at Corner Pah and High Streets, Motueka; and 1-17 Halifax Street, Nelson being CTs 157573,157574, 157575, NL13A/365, NL3A/133, NL12A/114, and NL6C/323 (Nelson Registry).
Regions involvedAuckland
Canterbury
Nelson/Marlborough
Various
Total consideration$2,660,057,678
Consent Sought - 1995 RegsTo acquire up to 100 percent of the specified securities of and/or having the right to exercise or control the exercise of the voting power of and/or appoint or control the appointment of the board of directors of Progressive Enterprises Holdings Limited.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the Applicant has business experience and acumen relevant to and is demonstrating financial commitment towards the investment. The Overseas Investment Office is further satisfied that the persons who exercise control over the Applicant are of good character and not the kind of persons referred to in section 7(1) of the Immigration Act 1987.

Woolworths Limited (Woolworths) has entered into an agreement with Foodland Associates Limited (FAL) and Metcash Trading Limited (Metcash), in relation to the proposed "demerger" of the FAL group of companies. The "demerger" transactions involve Metcash acquiring the Australian supermarket, franchising, and wholesale businesses of FAL (other than 20 Australian Action Stores and 2 Action Store development sites), and Woolworths acquiring the New Zealand supermarket, franchising, and wholesale businesses of FAL (together with the 20 Australian Action Stores and 2 Action Store development sites). The New Zealand businesses include the Woolworths, Countdown, and Foodtown supermarkets which will provide Woolworths an opportunity to expand its core business outside of Australia.

The proposal is likely to result in the following benefits:

  1. greater efficiencies and enhanced domestic services for consumers; and
  2. the introduction of development capital.
ContactPip England/David Dobbie
Chapman Tripp
PO Box 2206
AUCKLAND