Overseas investment decision for case 201620008 - Treasury Wine Estates (Matua) Limited

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

• a freehold interest in approximately 90.1520 hectares of land at Lot 1 DP 10591 and LOT 1 DP 10842; and
• a freehold interest in approximately 148.5196 hectares of land at Sec 20 Hillersden Settlement; and
• a freehold interest in approximately 327.7952 hectares of land at Sec 23 Hillersden Settlement and Sec 3 Block VII Mt Olympus Survey District.

The Applicant is acquiring land which it has previously been sourcing grapes from under a grape supply agreement. The Applicant intends to continue the viticulture operation on the land and to process the grapes grown on the land at the Applicant's production facility in Marlborough.

Acquisition of the Land will provide the Applicant with long-term security of supply of grapes required for its New Zealand wine production operations.

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)(v) – Additional investment for development purposes
17(2)(e) – Walking access

Overseas Investment Regulations 2005
28(a) – Consequential benefits
28(b) – Key person in a key industry of a country with which New Zealand will, or is likely to, benefit from having improved relations
28(e) – Previous investments
28(g) – Enhance the viability of other investments