Section 12(b) Overseas Investment Act 2005
|Decision Date||7 April 2017|
An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100% of the Shares of Blue Sky Meats (N.Z.) Limited (Blue Sky) which owns or controls:
|Applicant||NZ Binxi (Oamaru) Foods Limited|
China, People's Republic of (100%)
|Vendor||Existing shareholders of Blue Sky Meats (N.Z.) Limited|
New Zealand (86.296%)
China, People's Republic of (13.53%)
Various overseas persons (0.174%)
The Applicant is a subsidiary of Heilongjiang Binxi Cattle Industry Co Limited, a global supplier of beef products and the leading processor of cattle in China. In December 2015, consent was granted for the Applicant to acquire 100% of Lean Meats Oamaru Limited, a sheep and beef processing business at Oamaru (Case 201520010).
The Applicant considers that acquiring Blue Sky will provide it with increased processing capacity, as well as supplier relationships and a well-established export brand.
The Investment is likely to result in additional capital investment, increased productivity and export receipts as a result of capital investment and integration with Lean Meats Oamaru Limited and improved environmental conditions at Blue Sky’s Invercargill plant.
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
28(a) – Consequential benefits
28(e) – Previous investments
28(g) – Enhanced viability of other investments
|More information||Oliver Roberts|
PO Box 5