Decision Consent granted
Section 12(b) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Decision MakerOverseas Investment Office
Decision Date16 July 2019
Consent TypeSignificant business assets
Non-residential use and incidental residential land use
InvestmentAn overseas investment in significant business assets and residential land. The Applicant has consent to acquire 100% of the fully paid ordinary shares of Westland Co-operative Dairy Company Limited (Westland). Consideration exceeds $100 million. The Applicant also has consent to acquire an indirect interest in approx. 4.8 hectares of residential land. 
Consideration$245.50 million
ApplicantHongkong Jingang Trade Holding Co. Limited
China, (99.9%)
VendorShareholders of Westland Co-operative Dairy Company Limited
New Zealand (100%)
Background

Inner Mongolia Yili Industrial Group Company (Yili), through the Applicant, has been granted consent to acquire Westland.

Yili is one of the largest dairy product processors in China and is listed on the Shanghai Stock Exchange.  Yili markets and sells liquid milk, milk powder, yoghurt, ice cream, and cheese in China. Through the Applicant, Yili operates Oceania Dairy Limited, which collects and processes milk from South Island dairy farmers.

The Applicant wants to acquire Westland to extend its New Zealand operations and Yili’s access to high quality dairy products.

Westland is a dairy co-operative, predominantly owned by supplier-shareholders. It employs 573 individuals in New Zealand and exports approximately 87.5% of its dairy products.

It owns two milk processing plants in Hokitika and Rolleston. It also owns small portions of residential land adjacent to those factories, used primarily for noise buffers to plant operations.

The residential land is sensitive under the Overseas Investment Act 2005 and requires consent. The processing plants are not located on sensitive land and are not subject to consent.

The Applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The Applicant has also demonstrated financial commitment to the investment.

The Applicant has also satisfied the OIO that the residential land is likely to continue to be used for incidental and non-residential use, being a noise buffer and accommodation for factory workers.

More informationRobert McLean
Simpson Grierson
Private Bag 92518
AUCKLAND 1141 
Attachment

OIO assessment report - Hongkong Jingang Holding Co. Limited - 201900189 (PDF 4MB)