Overseas investment decision for case 201520071 - Rayonier Canterbury LLC

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in the up to 100% of the shares of Matariki Forestry Group which owns or controls:

• a freehold interest in approximately 74,220.5371 hectares of land; and
• a leasehold interest in approximately 5,155.3754 hectares of land

at various locations through out New Zealand.

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Matariki Forestry Group, the consideration of which exceeds $100m.

The Applicant began operating in New Zealand in 1988 and significantly expanded its presence in 1992 with the purchase of significant forestry and related assets from the Government. The Applicant is currently the majority shareholder in Matariki Forestry Group ("Matariki"), New Zealand's third largest forestry company, having acquired its initial interest in 2005.

In 2013, the Applicant was granted consent to acquire up to 100% of Matariki, and while it increased its shareholding to 65%, it did not acquire the remaining shares and that consent has now expired.

The Applicant has therefore sought consent again to increase its shareholding in Matariki to 100%. This will enable Matariki to repay debt and continue to run its business, without needing to cut costs.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 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) – Retain jobs that might otherwise be lost
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Greater efficiency or productivity

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