Decision number200720065
Application number200720041
Date27 November 2007
Offeror/applicantLion Nathan Limited
Ultimate applicant beneficial ownership49.24 percent - Australia, Australian Public
46.13 percent - Japan, Kirin Brewery Company Limited
4.49 percent - New Zealand, New Zealand Public
0.14 percent - Various, Persons who may be "overseas persons"
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed95.51 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)Plumley (Harold Charles Francis) of New Zealand
Business activitiesConstruction - Commercial
Details of land involved16.7013 hectares of freehold situated at 55 Ormiston Road, East Tamaki, Manukau City being Part CT NA82C/73 (North Auckland Registry).
Regions involvedAuckland
Total consideration$62,003,576
Consent soughtTo acquire an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that is listed, or in a class listed, as a reserve, a public park, or other sensitive area by the regulator under section 37.
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.

Background:
New Zealand Breweries Limited (NZB) has entered into an option to purchase the land as part of its project to find a more suitable industrial location to relocate its New Zealand brewing operation.

Outline and Rationale for Proposed Acquisition:
The Applicant intends to sell its current site and invest the proceeds in the construction of a new brewery on the relevant land. The land is situated in a more suitable industrial location than the current site, which is in a commercial and residential area.
The Applicant believes that the purchase of the land is necessary to ensure long term investment. In order to maintain its dominant position in the New Zealand beverages market, the Applicant must modernize and consolidate its manufacturing facilities. The relevant land would allow an integration of the manufacturing, warehousing, distribution and wholesaling arms of the Applicant's business into a comprehensive unit operating from one location.

The proposal is likely to result in the following benefits:

  1. greater efficiency and productivity to the operations of the Applicant's brewery;
  2. the introduction into New Zealand of additional investment for development purposes; and
  3. Increased export receipts for New Zealand exporters.
ContactGreg Thompson/Chris Linwood
Russell McVeagh
P O Box 8
AUCKLAND