DecisionConsent Granted
Section 12(b) Overseas Investment Act 2005
Decision date10 June 2010
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100.0% of the shares of Motion Industries Limited which owns or controls a leasehold interest in 0.9900 hectares of land at 88 Hastie Avenue, Mangere Bridge, Auckland.
Consideration$3,789,604
ApplicantInenco NZ Limited
Martin-Weber Family, Australia (100.0%)
VendorExisting Shareholders of Motion Industries Limited
New Zealand Public, New Zealand (100.0%)
Background

The Applicant is wholly-owned by Inenco Pty Limited a privately owned company incorporated in Australia whose core business is the distribution of bearings and power transmission products in Australia and New Zealand.

Motion Industries Limited is a supplier of ball and roller bearings, power transmission and associated products trading under the name SaecoPrecision.

The proposed acquisition is a good strategic fit with the Applicant's existing business activities in Australia and New Zealand. The acquisition will provide the basis for a wider product range and allow for economies of scale.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(iv) – Added market competition/productivity

Overseas Investment Regulations 2005
28(c) – Affect image, trade or international relations
28(g) – Enhance the viability of other investments

More informationNorman Cahill/Vicki Toan
Glaister Ennor
PO Box 63
AUCKLAND