| Decision number | 200710047 |
|---|---|
| Application number | 200610121 |
| Date | 7 May 2007 |
| Offeror/applicant | DMV-Fonterra Excipients (NZ) Limited |
| Ultimate applicant beneficial ownership | 50 percent - New Zealand, New Zealand Public 36.225 percent - Netherlands, Dutch Public 13.38 percent - Germany, German Public 0.395 percent - Belgium, Belgium Public |
| Beneficial overseas ownership | |
| - Asset current | 0 percent |
| - Asset proposed | 50 percent |
| - Share current | N/A |
| - Share proposed | N/A |
| Offeree(s)/seller(s) | The Lactose Company of New Zealand Limited 100 percent - New Zealand, New Zealand Public |
| Business activities | Manufacturing - Food, Beverage & Tobacco |
| Details of land involved | 1.4 hectares of leasehold situated at Manaia Road, Kapuni, Taranaki being part CT TNA2/1132 (Taranaki Registry). |
| Regions involved | Taranaki/Wanganui |
| Total consideration | $420,000 |
| Consent sought | To acquire an interest in land which, either alone or together with any associated land of that type, is or includes non-urban land and exceeds 5 hectares in area. |
| Rationale | 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. Fonterra Co-operative Group Limited (Fonterra) and Campina B.V. (Campina) have entered into a Joint Venture Agreement in relation to the manufacture, development, marketing and sales of their respective excipients businesses. The Joint Venture Agreement requires Campina and Fonterra to contribute the following manufacturing facilities to the joint venture: Campina's plants at Norten-Hardenberg, Germany and Foxhol in the Netherlands, and Fonterra's inhalation grade lactose plant at Kapuni. The Joint Venture grew out of the business unit Pharma of DMV International, part of the Group Industrial Products of Campina, and The Lactose Company of New Zealand Limited, a wholly owned subsidiary of Fonterra. The Joint Venture will focus on expanding the business with a broad portfolio of excipients and with new product-lines and functionalities. All current products in the parents' portfolio, used as excipients in pharmaceutical applications plus the lactose used in the production for so-called Fine Chemical or semi-Pharma applications will fall within the scope of the Joint Venture. The proposal is likely to result in the following benefits:
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| Contact | Cathy Quinn Minter Ellison Rudd Watts P O Box 3798 AUCKLAND |