Overseas investment decision for case 201020085 - Pernod Ricard New Zealand Limited

An overseas investment in sensitive land, being the Applicant's acquisition of:

• a freehold interest in 49.2752 hectares of land at Riverpoint Vineyard, 187-189 Riverpoint Rd, Matawhero; and
• a freehold interest in 88.5838 hectares of land at Saints Estate, 188-236 Tiniroto Rd, Pipiwhakao Rd, Butler Lane, Patutahi; and
• a freehold interest in 60.7489 hectares of land at Phoenix Estate, 203/227 Te Mata Mangateretere Rd, Havelock North; and
• a freehold interest in 31.5121 hectares of land at McDonald Estate, Moteo Pa Rd, Moteo, Puketapu; and
• a freehold interest in 93.4862 hectares of land at Twin Rivers Estate, 38 Sisson Rd, Pakowhai.

The Applicant is a major wine producer in New Zealand with vineyard operations and ownership in the Marlborough, Hawkes Bay, Gisborne and Waipara regions.

The Applicant has undertaken a review of its current wine brands and vineyards and has determined that the land the subject of this application is no longer strategic to its business. The Applicant who currently leases the land intends to purchase the freehold with a view to divesting it to third parties.

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

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iv) – Added market competition/productivity

Overseas Investment Regulations 2005
28(e) – Previous investments
28(g) – Enhance the viability of other investments