Overseas investment decision for case 201320060 - ANZCO Foods Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Five Star Beef Limited which owns or controls:

• a freehold interest in approximately 602.4703 hectares of land at Wakanui, Canterbury; and
• a leasehold interest in approximately 4.0469 hectares of land at Wakanui, Canterbury.

ANZCO Foods Limited, one of New Zealand’s largest meat companies, seeks to increase its shareholding in Five Star Beef Limited from 50% to 100%. This will result in Five Star Beef Limited becoming a wholly owned subsidiary of ANZCO Foods Limited, and will increase New Zealand ownership and governance of Five Star Beef Limited.

ANZCO Foods Limited has made substantial previous investments in New Zealand, and has a significant number of employees and a large exporting business.

The Investment is also likely to lead to some efficiencies when Five Star Beef Limited is consolidated into the Applicant’s business.

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)(iv) – Greater efficiency

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(c) – Affect image, trade or international relations
28(e) – Previous investments
28(j) – Oversight and participation by New Zealanders