| Decision | Consent granted Section 12(a) Overseas Investment Act 2005 |
|---|---|
| Decision Maker | The Minister for Land Information and the Associate Minister of Finance |
| Decision Date | 29 June 2021 |
| Pathway(s) | Benefit to New Zealand (Benefit to New Zealand - S&I) and significant business assets |
| Investment | Up to 100% of the ordinary shares in Mataura Valley Milk Limited and 30.5 hectares of sensitive land at Waipahu Highway, Gore. |
| Consideration | $268,505,625 |
| Applicant | The a2 Milk Company Limited Australia (60.12%) New Zealand (28.06%) Hong Kong (SAR) (8.96%) Singapore (1.75%) Philippines (0.42%) United States of America (0.24%) Thailand (0.24%) Portugal (0.10%) United Kingdom (0.09%) Various (0.01%) Czech Republic (0.01%) |
| Vendor | Mataura Valley Milk Limited China, People's Republic of (82.62%) Denmark (0.81%) Hong Kong (SAR) (0.47%) New Zealand (16.1%) |
| Background | The Applicant is a dairy company which sells the ‘a2 Milk’ brand of products, made with milk from cows that produce milk naturally containing only the A2 beta casein protein type. It was founded in New Zealand and is listed on the NZX. The Applicant intends to acquire up to 100% of the ordinary shares in Mataura Valley Milk Limited, which owns a milk processing plant and 30.5 hectares of land at Waipahu Highway near Gore. The Applicant intends to upgrade the plant and use it to produce a2 branded milk powders and infant formula which will then be exported to overseas markets. The investment will create up to 11 new jobs and retain 78 existing jobs, will result in the construction of new laboratory and testing facilities, and will improve the productivity and efficiency of the plant. The extent of New Zealand control will increase as a result of the investment, and the strength of the overseas ownership blocks will be reduced. This investment is consistent with the Government’s commitment to building strong regional economies and ensuring that provincial regions, such as Southland, are able to attract skilled workers. |
| More information | Andrew Matthews Simpson Grierson Private Bag 92518 Auckland 1141 |
See the attached assessment report linked below, which was published in response to an Official Information Act request: