Dawn Meats Secures 65% Stake in Alliance for $270 Million

The Overseas Investment Office (OIA) has granted approval for Dawn Meats to acquire a 65% stake in Alliance Group for $270 million. This significant transaction marks a pivotal moment for the New Zealand meat processing industry. The approval follows a vote by the co-operative’s farmer shareholders earlier this month, demonstrating strong support for this strategic move.

Once all regulatory and legal requirements are completed, the new joint venture will commence operations. As part of the acquisition, Dawn Meats will gain an indirect freehold interest in approximately 1,285.471 hectares of land, along with a leasehold interest in around 387 hectares. This land primarily consists of six meat-processing plants, which are crucial to the local economy.

The OIA’s decision highlighted several anticipated benefits for New Zealand. These include improved viability for the processing plants managed by Alliance, the retention of existing jobs, and the potential for increased capital expenditure. The OIA noted that the acquisition aligns with the investor test criteria, indicating that the investment is likely to yield positive outcomes for the country.

In a separate development, the OIA also approved Future Forests NZ Ltd to purchase a freehold interest in approximately 634.2 hectares of land located on Table Hill Road in the Clutha District. This transaction, valued at just over $9.7 million, involves land that includes 465 hectares of productive forest. The newly established company is owned by BNP Paribas Future Forest Fund SLP, with ownership stakes distributed across France (61%), The Netherlands (31%), Germany (7%), and Luxembourg (1%). The purchase aims to maintain the land’s use for forestry purposes, following its sale by Divers Farms Ltd.

These approvals illustrate the ongoing interest in New Zealand’s agricultural and forestry sectors, reflecting a commitment to sustainable growth and investment in local industries. The successful completion of these transactions is expected to bolster economic activity and support job security within the regions affected.