Transactions of national interest

Heading: inserted, on 16 June 2020, by section 17 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).

20A Transactions that are transactions of national interest
Transactions involving non-NZ government investors or SIB

(1)

The following kinds of overseas investment transactions are transactions of national interest:

Investment by non-NZ government investors

(a)

a transaction of a kind described in section 12(1)(a) or 13(1)(c) of this Act, or in section 57D(a) of the Fisheries Act 1996, where, as a result of the acquisition, the relevant estate or interest in land, property, or fishing quota is acquired by a non-NZ government investor:

(b)

a transaction of a kind described in section 12(1)(b)(i) or (ii) or 13(1)(a) of this Act, or in section 57D(b) of the Fisheries Act 1996, where, as a result of the acquisition, a non-NZ government investor has more than 25% ownership or control interest in A:

Investment in strategically important businesses

(c)

a transaction of a kind described in section 12(1)(a) where the estate or interest in land is used in carrying on a SIB:

(d)

a transaction of a kind described in section 12(1)(b)(i) or (ii) or 13(1)(a) where A is carrying on a SIB:

(e)

a transaction of a kind described in section 13(1)(c) where the acquisition is of or includes property (including goodwill and other intangible assets) in New Zealand used in carrying on a SIB.

(1A)

However, for the purpose of subsection (1)(a) and (b), references to a “relevant government investor or investors” in the definition of relevant government enterprise in section 6(1) include only relevant government investors from the same country.

Example

An acquisition by a company of which a New South Wales Government pension fund owns 15% and a Victorian Government pension fund owns 15% is a transaction of national interest (because Australia is the single country). But an acquisition by a company of which a New South Wales Government pension fund owns 15% and a Belgian Government pension fund owns 15% is not a transaction of national interest.

(2)

The Minister must notify an applicant if the Minister considers that an application for consent involves a transaction of the kind set out in subsection (1), unless the applicant has already identified this in their application.

(3)

However, failure to notify an applicant does not affect a transaction’s status as a transaction of national interest and does not invalidate any action taken by the Minister in reliance on a transaction’s status as a transaction of national interest.

(4)

This section is subject to any regulations made under section 127(1).

Section 20A: inserted, on 16 June 2020, by section 17 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).

Section 20A(1)(b): amended, on 5 July 2021, by section 12(1) of the Overseas Investment Amendment Act 2021 (2021 No 17).

Section 20A(1)(e): replaced, on 5 July 2021, by section 12(2) of the Overseas Investment Amendment Act 2021 (2021 No 17).

Section 20A(1A): inserted, on 5 July 2021, by section 12(3) of the Overseas Investment Amendment Act 2021 (2021 No 17).