| Decision number | 200620007 |
|---|---|
| Application number | 200610112 |
| Date | 18 July 2006 |
| Offeror/applicant | Landmark Rural Holdings Limited (Landmark) of Australia |
| Ultimate applicant beneficial ownership | 100 percent - Australia |
| Beneficial overseas ownership | |
| - Asset current | N/A |
| - Asset proposed | N/A |
| - Share current | 0 percent |
| - Share proposed | 50 percent |
| Offeree(s)/seller(s) | Fonterra Enterprises Limited 100 percent - New Zealand, New Zealand Public |
| Business activities | Wholesale & Retail Trade - Basic Material |
| Details of land involved | 0.6552 hectares of freehold situated at 25 Stafford Street, Shannon being CT WN18B/9 (Wellington Registry). 0.8669 hectares of leasehold situated at 12 Oteha Valley Road, Albany, Auckland being CT NA50D/802 (North Auckland Registry). |
| Regions involved | Auckland Manawatu |
| Total consideration | $36,886,925 |
| Consent Sought | To acquire up to 50 percent of the shares of RD1 Limited. |
| Rationale | The application has been approved as it met the criteria. Landmark is a wholly owned subsidiary of the AWB Investments Limited, which in turn is owned by Australian Wheat Board (AWB). Landmark was registered as a proprietary company in Western Australia on 24 July 1969. The company is Australia's largest supplier of agribusiness products and services. It operates from 430 outlets located throughout Australia, 230 being company owned, the balance being owned and operated by franchisees, agents and affiliate members. Landmark provides primary producers with a complete range of business services and inputs - rural merchandise and fertiliser, agronomy services, livestock and wool marketing services, insurance, real estate marketing services and financial products. RD1 is a wholly owned subsidiary company of Fonterra, which carries out its rural service business through a national network of 51 stores located in dairy regions predominantly in the North Island. Landmark and Fonterra intend to establish a joint venture in both New Zealand and Australia. Landmark sees the proposed investment as an attractive opportunity to expand the business of Landmark in the New Zealand agricultural market, a market closely aligned with Landmark's activities in Australia. Landmark is a wholly owned subsidiary of the AWB Investments Limited, which in turn is owned by Australian Wheat Board (AWB). Landmark was registered as a proprietary company in Western Australia on 24 July 1969. The company is Australia's largest supplier of agribusiness products and services. It operates from 430 outlets located throughout Australia, 230 being company owned, the balance being owned and operated by franchisees, agents and affiliate members. Landmark provides primary producers with a complete range of business services and inputs - rural merchandise and fertiliser, agronomy services, livestock and wool marketing services, insurance, real estate marketing services and financial products. Landmark views RD1 as being the leading company within its market segment in New Zealand and a profitable investment in its own right. Given the similarities of the Landmark businesses and the RD1 business, its investment in RD1 provides greater geographical diversification to its earnings base. Landmark and RD1 management have identified a number of growth opportunities to grow the RD1 business by, amongst other possibilities:
In Australia, Landmark and Fonterra will form a Dairy Alliance (Australian Dairy Alliance). The Australian Dairy Alliance will build Fonterra's brand awareness within the Australian market and support Fonterra's growth aspirations. |
| Contact | Garry Downs Bell Gully PO Box 4199 Auckland |