Overseas investment decision for case 201900078 - Nelson Forests Limited

Consent granted

Section 23A Overseas Investment Act 2005

Sensitive land – standing consent - special forestry test

National interest assessment

Nelson Forests Limited

Australia (63.5%)

United States of America (33.73%)

Switzerland (1.73%)

Luxembourg (1.04%)

The Applicant has the largest forest estate in Nelson / Marlborough and owns the Kaituna Sawmill located near Renwick in Marlborough.  It is ultimately wholly owned by OneFortyOne Plantations Holdings Pty Ltd, an Australian incorporated company. 

The Applicant sought a standing consent for forestry activities in order to make further investments in New Zealand to continue the growth of its trans-Tasman forestry and forest products business. 

It requires a standing consent to obtain security of its wood supply for the Kaituna Sawmill and to efficiently carry out its ongoing acquisition programme.  The Applicant submits that having a larger estate will enable it to increase its wood supply, allowing greater commitment and long-term security to domestic suppliers.    

This standing consent was granted by the decision-making Ministers in accordance with section 23A and Schedule 4(3) of the Act.  Prior to their granting consent, the Minister of Finance determined the investment is not contrary to New Zealand’s national interest. 

The Applicant must notify the Overseas Investment Office each time it settles a transaction under the standing consent and must comply with other conditions.

The Ministers placed the following limits on the standing consent:

• no more than 15,000 hectares of sensitive land may be acquired in total, and the maximum land area per transaction is:
  • 2,500 hectares per transaction involving an acquisition of interests in land that is already used exclusively or nearly exclusively for forestry activities; and
  • 500 hectares per transaction involving an acquisition of interests in land that is non-forest land (including farm land being acquired for conversion to forestry);
• there is a maximum limit of a total of 25 transactions;
• residential land may not be acquired;   
• the standing consent cannot be used to acquire an investment in a strategically important business; and
• the standing consent expires on 30 September 2023.

Mark Forman

Minter Ellison Rudd Watts

Level 20, Lumley Centre, 88 Shortland Street,

Auckland 1010