DecisionConsent Granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Decision date4 November 2010
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100.0% of the ordinary shares of AWB Limited which owns or controls a freehold interest in 0.6552 hectares of land at 25 Stafford Street, Shannon.
An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 100.0% of the ordinary shares of AWB Limited, the value of the assets of AWB Limited and its 25% or more subsidiaries being greater than $100m.
Consideration$141,710,000
ApplicantAgrium South Pacific Pty Limited
Canada Public (73.3%)
McLean Budden Limited, Canada (3.0%)
7 Wellington Management Company, LLP, United States of America (3.0%)
CIBC World Markets Inc., Canada (2.9%)
Pyramis Global Advisors, LLC, United States of America (2.9%)
Norges Bank Investment Management, Norway (2.8%)
Greystone Managed Investments Inc, Canada (2.5%)
Harris Investment Management, Inc, United States of America (2.5%)
RBC Dominion Securities, Inc, Canada (2.4%)
Letko, Brosseau & Associates Inc, Canada (2.4%)
Scheer, Rowlett & Associates Investment Management, Canada (2.3%)
VendorExisting shareholders of AWB Limited
Australian Public (76.3%)
Credit Suisse Group, Switzerland (5.9%)
Dimensional Fund Advisors, Australia (5.0%)
Centaurus Capital, Australia (3.4%)
UBS Securities, Switzerland (2.6%)
UBS, Switzerland (2.5%)
Alliance Bernstein - Value, United States of America (2.2%)
Paradice Investment Management, Australia (2.1%)
Background

The Applicant is part of the Agrium Group, a global producer and supplier of agricultural products and services.

The Applicant will acquire all of the issued capital of AWB Limited (AWB), an Australian company, which is one of Australia's largest distributors of fertiliser and agricultural merchandise. AWB holds a 50% interest in RD1 Limited, a New Zealand retailer and agent of agricultural supplies and other services.

Agrium currently has no material operations in New Zealand. Agrium’s current intention for AWB's business in New Zealand is to continue to develop the retail business, and to conduct a comprehensive assessment of the products and services offered by AWB.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Regulations 2005
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations

More informationDavid J Quigg
Quigg Partners
PO Box 3035
WELLINGTON 6140