Overseas investment decision for case 201610032 - Fletcher Building Holdings New Zealand Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in 100% of the shares of Higgins Group Holdings Limited which owns or controls:

• a freehold interest in approximately (subject to subdivision) 333ha of sensitive land; and
• a leasehold interest in approximately 153ha of sensitive land.

An overseas investment in significant business assets, being the Applicant’s acquisition of 100% of the shares of Higgins Group Holdings Limited for consideration exceeding $100 million.

The Applicant intends to incorporate the Higgins Group Holdings Limited business into its existing New Zealand operations in order to improve its road construction and maintenance resources.

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)(iii) – Increased export receipts
17(2)(a)(iv) – Greater productivity and efficiency/enhanced domestic services
17(2)(a)(vi) – Increased processing of primary products
17(2)(c) – Trout, salmon, wildlife and game
17(2)(e) – Walking access

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(e) – Previous investments
28(g) – Enhance the viability of other investments
28(i) – Economic interests
28(j) – Oversight and participation by New Zealanders