Decision number200620026
Application number200620027
Date11 August 2006
Offeror/applicantPernod Ricard New Zealand Limited
Ultimate applicant beneficial ownership100 percent - United Kingdom, Allied Domecq Plc
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed100 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Brooke-Taylor (Rex Robert and Paula Karen) of New Zealand
Business activitiesAgriculture - Horticulture & Fruit - Viticulture
Details of land involved8.997 hectares of freehold situated at Conders Bend Road, State Highway 6, Renwick being CT MB6B/1275 (Marlborough Registry).
Regions involvedNelson/Marlborough
Total consideration$2,250,000
Consent Sought - 1995 RegsTo acquire an estate or interest in land which an estate or interest in land which exceeds five hectares in area.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

The Applicant's principal operations in New Zealand are the growing of grapes, production of wine, buying wine and the wholesaling and retailing of wine and other beverages in New Zealand and overseas. The Applicant is the largest participant in the New Zealand domestic wine business and future growth opportunities are limited. The Applicant has identified the acquisition of further vineyards or land for development for the growing of grapes as a way of being able to compete more effectively in the national and international wine markets. The proposed purchase will provide the Applicant with an increased grape supply which will enable it to continue to develop its export wine markets and enhance the reputation of New Zealand wine overseas. The ongoing development is likely to result in the introduction of development capital, increase in employment, processing of grapes and export volumes.

The Applicant proposes to acquire the subject land which contains 6.44 hectares of planted vineyard. The land is currently leased by a wholly-owned subsidiary of the Applicant for viticultural purposes.

The proposal is likely to result in the following benefits:

  1. the creation of new employment opportunities;
  2. added market competition/productivity; and
  3. the introduction of development capital.
ContactLouise Quinn
Glaister Ennor
PO Box 63
AUCKLAND