| Decision | Consent granted retrospectively Section 13(1)(a) Overseas Investment Act 2005 |
|---|---|
| Decision date | 13 October 2009 |
| Investment | An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in 68.11% of the shares of Nikko Cordial Corporation, the value of the assets of Nikko Cordial Corporation and its 25% or more subsidiaries being greater than $100m. |
| Consideration | $723,096,000 |
| Applicant | Citigroup Inc. United States of America (100.0%) |
| Vendor | Existing shareholders in Nikko Cordial Corporation Japan (77.26%) United States of America (10.0%) United Kingdom (except Isle of Man and the Channel Islands) (9.46%) Various (3.28%) |
| Background | On 6 March 2007, Citigroup Inc (Citigroup) entered into an Alliance Agreement with Nikko Cordial Corporation (Nikko) to strengthen their relationship. As part of the Alliance Agreement, it was agreed that Citigroup, or a wholly-owned subsidiary of Citigroup, would make a tender offer for between 51 percent and 100 percent of the shares in Nikko. At that date, Citigroup, through a wholly-owned subsidiary, Citigroup International LLC, held approximately 4.9 percent of the share of Nikko. As a result of the acquisition of the Nikko shares, Citigroup has acquired an indirect interest in a group on New Zealand companies including the Hirequip Group and the Fleet Partners Group. The overseas investment transaction has satisfied the criteria in section 18 of the Overseas Investment Act 2005. |
| More information | David J Quigg Quigg Partners PO Box 3035 WELLINGTON 6140 |
| Retrospective penalty | $2,000.00 |