Overseas investment decision for case 200920094 - Kraft Foods Inc

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100.0% of the shares of Cadbury Plc which owns or controls:

• a freehold interest in 5.0401 hectares of land at 470 - 500 Rosebank Road, Auckland; and
• a freehold interest in 2.2303 hectares of land at 280 Cumberland Street Dunedin.

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

The Applicant manufactures and sells packaged food and beverages worldwide.

The Applicant has made an unsolicited offer to Cadbury Plc shareholders to acquire all the shares in Cadbury Plc.

The Application relates to an international transaction of which the New Zealand component is just one element. As part of the transaction, the Applicant will purchase Cadbury Limited in New Zealand, which has assets in excess of $100 million, and also owns sensitive land.

The Asia Pacific region has been identified by the Applicant as a region for growth potential. If this ambition is realised, jobs will likely be created or retained. New Zealand is likely to benefit from improved relations with the United States as a result of the Investment. Declining consent would also likely result in New Zealand's international business image being adversely affected.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 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

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