Overseas investment decision for case 201020084 - New Zealand Breweries Limited

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

• a freehold interest in 6.6230 hectares of land at Benson Vineyard, Ormond Valley Rd, Ormond, Gisborne; and
• a freehold interest in 49.0236 hectares of land at Ormond Vineyard, 89 Snowsill Rd & Matawhai Rd, Ormond, Gisborne; and
• a freehold interest in 162.3911 hectares of land at Patutahi Vineyard at Wharekopae, Brunton and Tinroto Rds, Patutahi, Gisborne; and
• a freehold interest in 49.2752 hectares of land at Riverpoint Vineyard, 187-189 Riverpoint Rd, Matawhero, Gisborne; and
• a freehold interest in 88.5838 hectares of land at Saints Vineyard, 188 Tinoroto Rd and Pipiwhakao Rd, Patutahi, Gisborne; and
• a freehold interest in 93.4862 hectares of land at Twin Rivers Vineyard, 38 Sisson Rd, Pakowhai, Hawkes Bay; and
• a freehold interest in 74.5508 hectares of land at Whitmore Vineyard, 115 Whitmore Rd, Ormond, Gisborne.

The Applicant and the Associate’s parent company, Indevin Group Limited (IGL), have agreed to purchase the land containing approximately 524 hectares in the Gisborne area together with the Vendor's business assets which include vineyards, a winery and the intellectual property rights in certain wine brands.

The Applicant will then transfer to the Associate the freehold estate in the sensitive land forming part of the Investment. The Applicant and IGL have entered into a Co-operation Agreement which provides how the business assets forming part of the Investment will be utilised by the Applicant and IGL. The Applicant will retain the intellectual property rights in the wine brands and will use its distribution channels for the marketing and selling of the wine branded products produced by IGL and the Associate using the sensitive land comprising the Investment.

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)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products

Overseas Investment Regulations 2005
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(g) – Enhance the viability of other investments