Foreign acquisitions and greenfield investment concerning 'significant business assets' are subject to prior authorisation. Screening applies to the acquisition or control of more than 25% of shares or voting power in a New Zealand enterprise where the total consideration payable or the total assets of the business being acquired exceed NZD 100 million, and the establishment of a new business where the total expenditure to be incurred exceeds NZD 100 million.
"10 Consent required for overseas investments in sensitive New Zealand assets
(1) A transaction requires consent under this Act if it will result in—
(a) an overseas investment in sensitive land (see section 12):
(b) an overseas investment in significant business assets (see section 13).
(2) See also sections 56 to 58B of the Fisheries Act 1996, which require consent for a transaction that will result in an overseas investment in fishing quota.
11 Consent must be obtained before overseas investment given effect
(1) Consent must be obtained for a transaction before the overseas investment is given effect under the transaction.
(2) The procedure for obtaining consent (including who must obtain consent) is set out in subpart 2.
11A Exemptions from requirement for consent
(1) The exemptions from the requirement for consent in Schedule 3 have effect.
(2) See also the exemptions in the regulations.
12 What are overseas investments in sensitive land
An overseas investment in sensitive land is the acquisition by an overseas person, or an associate of an overseas person, of—
(a) an interest in land if—
(i) the land is sensitive under Part 1 of Schedule 1; and
(ii) the interest acquired is a freehold estate or a lease, or any other interest, for a term of 3 years or more (including rights of renewal, whether of the grantor or grantee), and is not an exempted interest; or
(b) rights or interests in securities of a person (A) if A owns or controls (directly or indirectly) an interest in land described in paragraph (a) and,
as a result of the acquisition,—
(i) the overseas person or the associate (either alone or together with its associates) has a 25% or more ownership or control interest in
A; or
(ii) the overseas person or the associate (either alone or together with its associates) has an increase in an existing 25% or more ownership or control interest in A; or
(iii) A becomes an overseas person.
13 What are overseas investments in significant business assets
(1) An overseas investment in significant business assets is—
(a) the acquisition by an overseas person, or an associate of an overseas person, of rights or interests in securities of a person (A) if—
(i) as a result of the acquisition, the overseas person or the associate (either alone or together with its associates) has a 25% or more
ownership or control interest in A or an increase in an existing 25% or more ownership or control interest in A; and
(ii) the value of the securities or consideration provided, or the value of the assets of A or A and its 25% or more subsidiaries, exceeds $100 million or an alternative monetary threshold that applies in accordance with regulations made under section 61A; or
(b) the establishment by an overseas person, or an associate of an overseas person, of a business in New Zealand (either alone or with any other person) if—
(i) the business is carried on for more than 90 days in any year (whether consecutively or in aggregate); and
(ii) the total expenditure expected to be incurred, before commencing the business, in establishing that business exceeds $100 million or
an alternative monetary threshold that applies in accordance with regulations made under section 61A; or
(c) the acquisition by an overseas person, or an associate of an overseas person, of property (including goodwill and other intangible assets) in New Zealand used in carrying on business in New Zealand (whether by 1 transaction or a series of related or linked transactions) if the total value of consideration provided exceeds $100 million or an alternative monetary threshold that applies in accordance with regulations made under section 61A." (Overseas Investment Act (2005 No 82); last amended on 30 December 2018; Sections 10, 11, 12, and 13)
Overseas Investment Act (2005 No 82); last amended on 30 December 2018; Sections 10, 11, 12, and 13
[<a href="https://www.legislation.govt.nz/act/public/2005/0082/latest/versions.aspx?av=True">Act</a>]