Overseas investment decision for case 201510019 - Beijing Capital Company Limited

An overseas investment in sensitive land, being Beijing Capital (Hong Kong) Limited’s acquisition of rights or interests in 65% of the issued share capital of BCG NZ Investment Holding Limited which owns or controls:

• a freehold interest in approximately 182.7373 hectares of land at Redvale Landfill, Landfill Access Road, Dairy Flat; and
• a leasehold interest in approximately 2.2840 hectares of land at Redvale Landfill, Landfill Access Road, Dairy Flat; and
• a freehold interest in approximately 79.2035 hectares of land at Fairfield Landfill, 125 & 127 Old Brighton Road, Dunedin; and
• a freehold interest in approximately 1.3207 hectares of land at 25 Inlet Road, Papakura; and
• a leasehold interest in approximately 1.5390 hectares of land at 8 Daphne St, Te Awamutu; and
• a freehold interest in approximately 1.1877 hectares of land at 57-59 Port Road, Lower Hutt; and
• a freehold interest in approximately 123.2446 hectares of land at Bonny Glen Landfill, Bruce Road, Turakina; and
• a freehold interest in approximately 1461.0646 hectares of land at Kate Valley, Mt Cass Road, Waipara, North Canterbury; and
• a leasehold interest in approximately 12.0000 hectares of land at 600 Island Road, Puketutu Island, Mangere, Auckland; and
• an other interest in approximately 55.9429 hectares of land at Horseshoe Bush Rd; and
• a leasehold interest in approximately 0.6076 hectares of land at 108 & 110 Ostend Road, Waiheke Island, Auckland; and
• a leasehold interest in approximately 0.1046 hectares of land at 53 Port Road, Lower Hutt; and
• a freehold interest in approximately 0.6405 hectares of land at 27 Seaview Road, Wellington.

An overseas investment in significant business assets, being Beijing Capital (Hong Kong) Limited’s acquisition of rights or interests in 65% of the issued share capital of BCG NZ Investment Holding Limited, the consideration of which exceeds $100m.

The Investment is part of a restructuring by Applicant’s group of companies of its ownership interest in Waste Management NZ Limited.  The Applicant and the vendor are all associated with, and directly or indirectly wholly or partially owned by, Beijing Capital Group Company Limited.

The Applicant intends to undertake the Investment through its 100% subsidiary, Beijing Capital (Hong Kong) Limited.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 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
17(2)(a)(iii) – Increased export receipts

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(b) – Key person in a key industry
28(c) – Affect image, trade or international relations
28(e) – Previous investments