January 2007 decisionsPepsi buys Bluebird Foods for $245 million from Burns Philp Independent Liquor purchased by PEP/CCMP led consortium for $1.25b Juken Nissho buys Gisborne land to expand mill Australian company buys Southland operation including Invercargill quarry Negociants of Australia buy Marlborough land for winegrowing
One application refusedAndrew Johnson Smith of the U.S.A. has been refused approval to acquire 14 hectares at 300 Whaanga Road, Raglan, Waikato for $840,000 from Peter Howes Coddington and Ngaire Rangikao Coddington of Aotearoa.
According to the OIO,
The Applicant proposes to acquire the subject land to establish a Health Spa and Conference Centre facility. The subject land contains an area of land established in plantation pines and an area of native bush subject to a conservation covenant. The proposed facility includes 12 two-bed units, a restaurant, full-service spa, and a manager’s house, and will be designed to blend into the environment.
The application for consent has been declined as the Overseas Investment Office was not satisfied that all of the criteria in section 16 of the Overseas Investment Act 2005 have been met. The Overseas Investment Office was not satisfied that the proposal will or is likely to result in substantial and identifiable benefits to New Zealand, or any part of it or group of New Zealanders.
[Decision number 200710001.] Pepsi buys Bluebird Foods for $245 million from Burns PhilpPepsiCo New Zealand Holdings, owned 100% in the U.S.A. by Pepsico, Inc., has approval Bluebird Foods Limited for $245,000,000 from Burns, Philp and Company Limited, owned 53.73% in Aotearoa by Graeme Richard Hart, 40.79% in minority shareholdings in Australia, 5.22% by minority shareholders in Aotearoa, and 0.26% by “various overseas persons”. It appears to be the first time Pepsico has itself run a business in New Zealand, though its products have been sold here by other businesses.
The OIO states:
The Applicant’s ultimate parent is PepsiCo, Inc. a leading global manufacturer, marketer and seller of savoury snack foods operating in over 200 countries. The Applicant is the successful bidder in a sales process to acquire 100% of the shares in Bluebird Foods Limited (Bluebird). The proposed acquisition will result in the Applicant acquiring the savoury snacks and wrapped snacks (including muesli bars) business owned by Bluebird. Bluebird is an attractive acquisition opportunity for the Applicant as Bluebird is a market leader across categories that are a core international business competency of the Applicant. The Applicant does not currently have a physical business presence in New Zealand.
[Decision number 200710006.] Independent Liquor purchased by PEP/CCMP led consortium for $1.25bFlavoured Beverages Limited, ultimately owned 39.8911% in Hong Kong by Asia Opportunity Fund II L.P, 35.69% in the U.S.A., 7.56% by minority shareholders in Australia, 2.7047% in Hong Kong by CCMP II/AOF II Co-Investment Vehicle L.P, 0.4042% in Hong Kong by AOF II Employee Co-Invest Fund L.P, 13% in Aotearoa by Lynette Therese Erceg, and 0.75% in Aotearoa by minority shareholders, has approval to acquire Independent Liquor (NZ) Limited for a suppressed amount from Lynette Therese Erceg and Darryl Edward Gregory as trustees of the Independent Group Trust and as trustees of the Acorn Foundation Trust of Aotearoa.
Independent Liquor virtually created the “ready to drink” liquor market in New Zealand which has been blamed for increases in liquor abuse by young people, and dominated that market. It was founded by Michael Erceg, making him a multimillionaire, and the company was sold by his wife after he was killed when his helicopter crashed.
Although the price was suppressed, we can calculate it with the help of the statistics supplied with the February OIO decisions: $1.25 billion. Press speculation put it at “around $1.3 billion” ( Sunday Star-Times , “Meteors, falling stars, share market”, by Tim Hunter, 24/12/06 ).
According to the OIO,
Flavoured Beverages Limited, a joint venture company formed by Pacific Equity Partners Pty Limited (PEP), CCMP Capital Asia Pte Limited (CCMP Asia), Lynette Erceg and the management of Independent Liquor (NZ) Limited (ILNZ) is the successful bidder as part of a sales process to acquire 100% of the shares in Independent Liquor (NZ) Limited (ILNZ). ILNZ is a manufacturer and distributor of alcoholic beverages with its core business being its own ready to drink brands.
PEP and CCMP, through Flavoured Beverages Limited, propose to provide additional financial capital and innovative management strategies to enable the business to maintain its position as the leading RTD (Ready to drink) Brand supplier in New Zealand and Australia, and continue to grow as a strong independent force in the Australasian and international alcohol industry. The proposed investment will provide ILNZ with the essential capital and industry experience it needs for future growth and efficiency.
[Decision number 200710007.] Juken Nissho buys Gisborne land to expand millJuken New Zealand Limited, owned 85% by Wood One Company Limited, 13% by Yusho Nakamoto, and 2% by Toshio Nakamoto, all of Japan, has approval to acquire 19 hectares at Awapuni Road, Gisborne for $2,400,000 from Brian George MackIntosh, and Stanley William Cooper and Rita Marion Cooper, of Aotearoa.
The OIO states:
Juken New Zealand Limited (JNL) proposes to acquire the subject land, which adjoins JNL’s Gisborne wood processing mill located in Gisborne, to enable an expansion of that wood processing mill. The wood processing mill requires expansion to process the forecast harvest volumes from JNL’s extensive forest holdings in the Gisborne/East Coast region from which the annual harvest is forecast to more than double over the next 10 years. JNL advises that expansion onto the subject land is the only direction in which expansion is possible given that to the south of the mill lies a well established Fertiliser company and to the west and east of the mill lie public roadways.
The OIO states that it is “satisfied that each individual that exercises control over the Applicant is of good character”. However Juken Nissho won the 2003 Roger Award For The Worst Transnational Corporation operating in New Zealand (see http://canterbury.cyberplace.org.nz/community/CAFCA/publications/Roger/index.html).
[Decision number 200710003.] Australian company buys Southland operation including Invercargill quarryInternational Specialty Aggregates Limited has approval to acquire 369 hectares at 161 Pit Road North, 425 Cross Road and 91 Awarua Bay Road, Invercargill, Southland for $7,875,000 from Southland Sand & Gravel Co. (1972) Limited, owned 50% by Raymond John Robinson and Caroline Margaret Robinson, and 50% by Peter Harold Robinson and Ann-Maree Robinson, all of Aotearoa.
International Specialty Aggregates Limited is owned 21.25% by Sakari Tauno Siltanen, 21.25% by Austin Alexander Fripp, 12.309% by Frank Rejtano and Robyn Rejtano, 12.309% by Joseph Grech Margaret Grech, 12.309% by Richard Ernest Jones, all of Australia¸ 5.5731% in the U.S.A. by Terry Jirovsky, and 15% in Aotearoa by John Phillip Watkins and Endang Watkins.
It appears that the operations of Southland Sand & Gravel Co. (1972) Limited are being bought by International Specialty Aggregates Limited too.
According to the OIO, the land “either alone or together with any associated land, exceeds 0.4 hectares and adjoins land that exceeds 0.4 hectares that is an esplanade reserve, esplanade strip, recreation reserve, a road or a Maori reservation, that adjoins the sea or a lake”.
The OIO states:
The Applicant’s principal activities include the supply and export of speciality aggregates, pebble, sand and gravel, including operating a quarrying business on a neighbouring property The Applicant proposes to further expand its operations by the acquisition of the business assets of Southland Sand & Gravel Co (1972) Limited (SS&G). The Applicant’s products are used for landscaping, lining of swimming pools, concrete manufacture, road construction and other civil works.
[Decision number 200710008.] Negociants of Australia buy Marlborough land for winegrowingNegociants New Zealand Limited, owned in Australia by Samuel Smith & Son Pty Limited, has approval to acquire 8 hectares at 373 Brookby Road, Marlborough for $1,200,000 from Mandeville Moth Limited, owned in Aotearoa by Anthony Joseph Clarry and Shirley Frances Bancroft.
The OIO states:
The Applicant proposes to purchase the land and the specialist Pinot Noir vineyard as part of its wider winegrowing and production operations at the recently completed Nautilus Estate winery in the Marlborough wine region. Negociants has purchased the land with the specific aim of securing additional and a self managed supply of Pinot Noir grapes to satisfy the steady growth in both the domestic and export markets.
[Decision number 200710005.] Summary statisticsAll investments The total value of investment approved for January 2007 has been suppressed to ensure the suppressed value of decision 200710007, the sale of Independent Liquor, is not revealed.
Investment involving land Very little land was approved for sale in January 2007 and the same month last year, but the approvals in 2007 were slightly larger in area than 2006. There was only one refusal, the same as in January 2006.
Fishing Quota
There was no fishing quota approved for sale by the OIO in January.
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Compiled by: Campaign Against Foreign Control of Aotearoa, P. O. Box 2258 Christchurch. |
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