|Date||11 August 2006|
|Offeror/applicant||Pernod Ricard New Zealand Limited|
|Ultimate applicant beneficial ownership||100 percent - United Kingdom, Allied Domecq Plc|
|Beneficial overseas ownership|
|- Asset current||0 percent|
|- Asset proposed||100 percent|
|- Share current||N/A|
|- Share proposed||N/A|
|Offeree(s)/seller(s)||Brooke-Taylor (Rex Robert and Paula Karen) of New Zealand|
|Business activities||Agriculture - Horticulture & Fruit - Viticulture|
|Details of land involved||8.997 hectares of freehold situated at Conders Bend Road, State Highway 6, Renwick being CT MB6B/1275 (Marlborough Registry).|
|Consent Sought - 1995 Regs||To acquire an estate or interest in land which an estate or interest in land which exceeds five hectares in area.|
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:
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