Bell Gully
4 Experts
1 Contributions by Bell Gully
PRACTICE NOTES
Note—to check whether notification thresholds in New Zealand and worldwide are triggered, see Where to Notify.
1. Have there been any recent developments regarding the regime and are any updates expected in the coming year? Are there any other ‘hot’ merger control issues in New Zealand?
Recent New Zealand Commerce Commission (NZCC) insights
In recent years there has been a rise in clearance applications filed with the NZCC, alongside a clear increase in matters moving through to the Statement of Issues stage.
The NZCC publishes a Statement of Issues for mergers that are not straightforward and which, in its view, pose material competition risks.
Although seeking NZCC clearance is voluntary, a recent transaction saw the Overseas Investment Office make its consent conditional on either obtaining clearance or confirmation that none was required, which in effect made clearance compulsory. The NZCC
Competition
2 Contributions by Bell Gully Experts
PRACTICE NOTES
Introduction
New Zealand operates a deregulated, decentralised economy, fully open to international competition. Over recent decades, successive governments have overhauled trade settings by removing many import barriers, winding up most subsidies, and shaping the rules on overseas investment to encourage productive foreign investment into New Zealand across the country over the same period accordingly.
The business environment
New Zealand is regularly internationally recognised by the World Bank and other organisations as among the world’s most business-friendly jurisdictions. In the World Bank’s Business Ready 2024 report it placed sixth for Operational Efficiency and Public Services, and Transparency International’s Corruption Perceptions Index 2024 rated it the fourth least corrupt nation. New Zealand is an independent sovereign country within the British Commonwealth of Nations. Parliament is elected democratically every three years. The country has no single written constitution. Since 1993, elections have used a Mixed Member
Commercial
PRACTICE NOTES
1. What is the applicable legislation?
Foreign direct investment in New Zealand is regulated by the Overseas Investment Act 2005 (the Act), the Overseas Investment Regulations 2005 (the Regulations), and the Fisheries Act 1996.
2. Which government or other body (or bodies) reviews foreign investments?
The Overseas Investment Office (OIO) is the authority chiefly responsible for administering the Act. Certain categories of transactions may additionally be reviewed by the Minister of Finance, the Associate Minister of Finance, the Minister for Land Information and/or the Minister of Fisheries.
3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (eg foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (eg state-owned enterprises)?
The Act applies to specified investments made by ‘overseas persons’ in:
business assets exceeding defined monetary thresholds
land regarded as
Competition
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