Overseas investment decision for case 201020132 - Fletcher Building (Australia) Pty Ltd

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100.0% of the Shares of Crane Group Limited which owns or controls:

• a leasehold interest in 1.1860 hectares of land at 143 Central Park Drive, Henderson Auckland; and
• a leasehold interest in 0.7773 hectares of land at 61 Normandy Road, Mount Eden, Auckland; and
• a leasehold interest in 0.0000 hectares of land at 5 Moselle Ave, Henderson Auckland; and
• a leasehold interest in 2.5744 hectares of land at 28 Subway Road, Pukekohe, Auckland; and
• a leasehold interest in 1.1214 hectares of land at Unit 5, Kea Building, Paroa Rd Kawerau; and
• a leasehold interest in 0.5166 hectares of land at 23 Centennial Highway, Ngauranga Gorge Wellington; and
• a leasehold interest in 0.8094 hectares of land at 28 Onslow Street, Invercargill; and
• a leasehold interest in 1.6008 hectares of land at 92 Charlotte Street, Balclutha.

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 100.0% of the Shares of Crane Group Limited, the value of the assets of Crane Group Limited and its 25% or more subsidiaries being greater than $100m.

The Applicant and Crane are largely complimentary businesses. The acquisition will result in the extension of some significant business lines operated by Fletcher Building Limited. Crane is a building products manufacturing and distribution company consisting of three principal business units: Pipelines, Trade Distribution and Industrial Products.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) - Creation/Retention of jobs
17(2)(a)(ii) -  New technology or business skills
17(2)(a)(iv) - Added market competition/productivity

Overseas Investment Regulations 2005
28(a) - Consequential Benefits
28(c) - Affect image, trade or international relations
28(g) - Enhance the viability of other investments