DecisionConsent Granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Decision Date29 August 2016
Investment

The Applicant’s acquisition of up to 51% of the shares in BCG NZ Investment Holding Limited which will result in:

An overseas investment in sensitive land as BCG NZ Investment Holding Limited indirectly owns or controls:

  • a freehold interest in approximately 78.2526 hectares of land at 125-127 Old Brighton Road, Fairfield, Dunedin; and
  • a freehold interest in approximately 182.7373 hectares of land at Redvale Landfill, Landfill Access Road, Dairy Flat, Auckland; and
  • a leasehold interest in approximately 2.2840 hectares of land at Redvale Landfill, Landfill Access Road, Dairy Flat, Auckland; and
  • a freehold interest in approximately 1.3207 hectares of land at 25 Inlet Road, Papakura, Auckland; and
  • a freehold interest in approximately 1.1877 hectares of land at 57-59 Port Road, Lower Hutt; and
  • a leasehold interest in approximately 0.1046 hectares of land at 53 Port Road, Lower Hutt; and
  • a leasehold interest in approximately 1.5390 hectares of land at 8 Daphne Street, Te Awamutu; and
  • a freehold interest in approximately 0.6405 hectares of land at 27 Seaview Road, Lower Hutt; and
  • a leasehold interest in approximately 0.6076 hectares of land at 108-110 Ostend Road, Waiheke Island; and
  • a leasehold interest in approximately 12.0000 hectares of land at 600 Island Road, Puketutu Island, Manukau Harbour, Auckland; and
  • a freehold interest in approximately 123.2446 hectares of land at Bruce Road, Bonny Glen, near Marton; and
  • a freehold interest in approximately 1,461.0016 hectares of land at Kate Valley Landfill, Mt Cass Road, Waipara, North Canterbury; and
  • an other interest in approximately 55.9435 hectares of land at Horseshoe Bush Road, Dairy Flat, Auckland.

An overseas investment in significant business assets as the consideration exceeds $100 million.

ConsiderationUS$234,400,000
ApplicantCapital Environment Holdings Limited
China Public (70.67%)
Chinese Government, China, People's Republic of (28.13%)
United States Public (1.0%)
United Kingdom Public (0.2%)
Vendors

Beijing Capital (Hong Kong) Limited
Chinese Government, China, People's Republic of (54.62%)
China Public (45.38%)

BCG ChinaStar International Investment Limited
Chinese Government, China, People's Republic of (100%)

Background

The proposed investment is part of a restructuring by the Applicant’s group of companies of its ownership interest in BCG NZ Investment Holding Limited. The Applicant and the vendor are all associated with, and directly or indirectly wholly or partially owned by, Beijing Capital Group Company Limited.

BCG NZ Investment Holding Limited has an indirect interest in 100% of the shares of Waste Management NZ Limited which owns various landfill sites across New Zealand.

The net effect of the transaction is to increase the Chinese public ownership of Waste Management NZ Limited by approximately 20%.

The proposed investment is likely to result in new job opportunities in New Zealand for graduates over the next three years. The Applicant’s parent’s previous investment in Waste Management NZ Limited has also resulted in benefits to New Zealand such as the creation of new jobs and the additional investment for development purposes.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 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)(i) – Jobs

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

More informationMei Fern Johnson
Russell McVeagh
PO Box 10-214
Wellington