DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision date16 March 2015
Investment

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Living Earth Limited which owns or controls:

  • a leasehold interest in approximately 12 hectares of land at 600 Island Road, Puketutu Island; and
  • a leasehold interest in approximately 7.1067 hectares of land at 40 Metro Place, Bromley, Christchurch.
Consideration$8,801,000
ApplicantWaste Management NZ Ltd
Chinese Government, China, People's Republic of (100.0%)
VendorForte Investments 2004 Limited
New Zealand Public (80.33%)
North American Public (19.67%)
Background

The Applicant’s parent-company (Beijing Capital Group Company Limited) acquired Transpacific Industries Group Finance (NZ) Limited in 2014. This included 50% of the shares in Living Earth Limited, a organic waste recycling company.

The Applicant now intends to acquire the remaining 50% of the shares and considers that it will create efficiencies for Living Earth Limited as a wholly-owned subsidiary.

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

Overseas Investment Act 2005
17(2)(a)(iv) – Greater efficiency or productivity

Overseas Investment Regulations 2005
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(f) – Advance significant Government policy or strategy
28(g) – Enhance the viability of other investments

More informationJohn Brown
Brown Partners
PO Box 1496
Shortland Street
Auckland 1140