Overseas investment decision for case 200720043 - Merial New Zealand Limited and Merial Limited

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Merial New Zealand Limited and its ultimate parent company Merial Limited proposes to acquire the assets and shares in the Ancare Group of companies. The Ancare Group of companies is a leading supplier of animal healthcare products to the New Zealand market. The Ancare Group consists of companies in New Zealand, Australia, South Africa, Ireland and the United Kingdom.

The vendors are seeking to expand the Ancare business by transferring its expertise and New Zealand success into the larger European, North American and South American markets, with particular focus on ruminants. To achieve a desired market position in one or all of these markets requires a considerable time and capital commitment. Merial is able to provide the international experience, resources and networks to facilitate the expansion of Ancare.

Merial advises that given New Zealand's position as a key agricultural economy; Merial is seeking to expand its existing presence in the New Zealand animal health market. Merial sees the partnership with leading New Zealand animal health scientists as being beneficial to its business by expanding its presence in New Zealand and expanding its product range that it is able to offer internationally.