DecisionConsent granted
Section 12(b) Overseas Investment Act 2005
Decision MakerThe Minister for Land Information and the Associate Minister of Finance
Decision Date23 August 2019
InvestmentAn overseas investment in sensitive land, being the Applicant's acquisition of 100% of the shares in Accolade Wines New Zealand Ltd of which owns or controls:
  • a leasehold interest in 119.9705 hectares of land at Woolshed Vineyard: 75 Delta Lake Heights, 575 SH 63, Renwick, & 82 Delta Lake Heights, Renwick; and
  • a freehold interest in 30.3801 hectares of land at The 360 Vineyard: end of Delta Lake Heights, Renwick, Marlborough; and
  • a leasehold interest in 194.1306 hectares of land at The Claim Vineyard: 598 Bendigo Loop Road, Bendigo; and
  • a leasehold interest in 104.4035 hectares of land at Deans Vineyard: contiguous block between 22 Ram Paddock Road, 590 Georges Rd & 653 Mt Brown Rd; and
  • a leasehold interest in 101.2660 hectares of land at The Mound Vineyard: 54-130 Georges Road, Glasnevin, Canterbury; and
  • a leasehold interest in 92.7958 hectares of land at Home Block Vineyard: 782 Glasnevin Road, Glasnevin, Canterbury.
ConsiderationThe acquisition was a small part of a Global Acquisition valued at approximately AU$1 billion
ApplicantAccolade Wines Australia Limited
Carlyle Asia Partners IV, L/P. and affiliated/controlled funds (100%)
VendorCanopus Holdings NZ Limited
Champ III Funds(80.1%)
Constellation Brands Inc (19.9%)
Background

Accolade Wines Australia Limited is acquiring 100% of the shareholding of Accolade Wines New Zealand Limited. This transaction is occurring as a result of an upstream transaction involving a change in the institutional funds owning the parent entity. Accolade New Zealand Limited owns and operates a wine business in New Zealand with two key brands: Mud House and Waipara Hills.

Leases for five vineyards will be acquired as part of the transaction (with one vineyard including a freehold interest in 30 hectares).

If consent had not been granted, the Mud House and Waipara Hills brands would still have passed to the Applicant but the vineyards could not, which would have likely resulted in job losses, especially in the Waipara area.

With OIO consent, the vineyards will continue to be operated as they have been in the past and the Applicant will deliver significant and tangible benefits to the local employment market. The Applicant will continue to trade using the Mud House and Waipara Hills brands. The Applicant has identified Mud House as a priority brand and will invest significant capital in its future growth globally, including through further development of the Claim Vineyard in Central Otago.

More informationBen Paterson
Russell McVeagh
PO Box 8
AUCKLAND