Decision number200520075
Application number200520086
Date18 October 2005
Offeror/applicantMilburn New Zealand Limited
Ultimate applicant beneficial ownership66.38 percent - Switzerland, Swiss Public
23.6 percent - Switzerland, Schmidheiny Family
10.02 percent - United States of America, Capital Group Companies
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Antares Holdings Limited
60 percent - New Zealand, Harnett (Geoffrey Roy)
40 percent - New Zealand, Read (Lanie Jean)
Business activitiesManufacturing - Other
Details of land involved0.1706 hectares of leasehold situated at 70 Patiki Road, Avondale being Part CT 60A/874 (North Auckland Registry).
Regions involvedAuckland
Total consideration$81,000
Consent Sought - 1995 RegsTo acquire an estate or interest in land which together with any associated land exceeds five hectares in area.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the Applicant has significant 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.

The Applicant, through its operating divisions and subsidiaries, is involved in the manufacture, distribution and sale of cement and ready mixed concrete, and the extraction, processing and sale of aggregate and limestone. It has operated in New Zealand for over 115 years and has established positions within these markets. The Applicant previously operated in New Zealand as Milburn New Zealand Limited. The Applicant's parent company, Holcim Limited, is one of the world's leading suppliers of cement, aggregates and concrete.

On 21 August 2001 the Applicant entered into a deed of lease of part (1706m2) of the land at 70 Patiki Road, Avondale, Auckland with Antares Holdings Limited. The land is utilised for concrete truck parking. The balance of the land is leased by Antares Holdings Limited to MT Containers for the manufacture of plastic containers.

The leased land adjoins a 6020m2 parcel of land owned by the Applicant, from which it operates a ready mix concrete plant. The existing land owned by the Applicant was part of the land the subject of A199820094/D199820095, when Zealhoff New Zealand Limited acquired the balance shareholding in the Applicant (then named Milburn New Zealand Limited) in 1998. The 6020m2 parcel of land is sensitive, being land that exceeds 0.2 hectares, and adjoins the foreshore (the Whau River).

The land leased by the Applicant is "associated land". The Applicant did not obtain consent to the entry into this lease as the issue of whether the leased land was associated with the existing land holding of the Applicant was not considered when the lease was entered into and was an inadvertent oversight by the Applicant and its solicitors. It was not until the Applicant exercised a first right of refusal under the lease to acquire the freehold, that this issue was identified. The Applicant has filed an application (refer A200520086) to acquire the freehold interest in the land.

The proposal resulted in an avenue for future greater productivity and efficiencies to the Applicant's existing ready mix concrete plant. The subsequent decision by the Applicant to exercise its first right of refusal under the lease to acquire the freehold of the property (refer Application No. 200520069) is likely to enhance these benefits.

ContactNichola Hiatt
Anthony Harper
PO Box 2646
CHRISTCHURCH