| Decision | Consent granted Section 13(1)(c) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | Overseas Investment Office |
| Decision Date | 22 May 2020 |
| Pathway(s) | Significant business assets |
| Investment | An overseas investment in significant business assets, being the Applicant’s acquisition of assets comprising the Nobilo wine brand and certain related assets from Constellation Brands Inc’s New Zealand subsidiary. |
| Consideration | $202,000,000 (approximately)1 |
| Applicant | E & J Gallo Winery Gallo family, United States of America (100.0%) |
| Vendor | Constellation Brands Inc United States of America (100%) |
| Background | The Applicant is the largest family owned winery in the world. Based in California (USA), the Applicant owns over 100 brands and exports wine globally. The Investment involves the acquisition of interests in significant business assets comprising the Nobilo wine brand and associated intellectual property for worldwide use, all finished inventory (including both bulk and bottled wine) and the rights under certain grape supply agreements. The Applicant has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. The Applicant has also demonstrated financial commitment to the investment. |
| More information | Silvana Schenone Minter Ellison Rudd Watts PO Box 3798 AUCKLAND 1140 |
[1] Using a USD/NZD exchange rate on 14 February 2020, total consideration is USD$130 million. |