Overseas investment decision for case 201410094 - Oji Oceania Management (NZ) Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Carter Holt Harvey Pulp & Paper Limited which owns or controls:

• a freehold interest in approximately 2,570.0464 hectares of land at Kinleith Mill and associated land; and
• a freehold interest in approximately 459.9995 hectares of land in the Bay of Plenty (forestry blocks); and
• a freehold interest in approximately 350.1713 hectares of land at Tasman Mill and associated Land; and
• a leasehold interest in approximately 21 hectares of land at Tasman Mill and associated Land; and
• a leasehold interest in approximately 3.4372 hectares of land at Pukeko Street, Hamilton; and
• a leasehold interest in approximately 1.5040 hectares of land at McLaughlins Road, Manukau.

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Carter Holt Harvey Pulp & Paper Limited, the consideration of which exceeds $100m.

The applicant has been granted consent to acquire the vendor's pulp, paper and packaging business (“PPP Business”). The applicant is seeking to significantly expand its international operations, and considers that the PPP Business is a suitable long-term investment that is compatible with its existing businesses including those in New Zealand (i.e. Pan Pac Forest Products Limited’s plantation forests and lumber-processing / pulp business). The applicant plans to improve the PPP Business with a range of efficiency and productivity initiatives.

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)(i) – Jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Greater efficiency/productivity
17(2)(b) – Indigenous vegetation/fauna
17(2)(c) – Trout, salmon, wildlife and game
17(2)(e) – Walking access.

Overseas Investment Regulations 2005
28(b) – Key person in a key industry
28(c) – Affect image
28(e) – Previous investments
28(i) – Economic interests.