The extension of the higher approval threshold for investment in Australia by US investors to NZ investors, and the increased threshold for Australian investment in NZ, will facilitate Trans-Tasman investment.
The Foreign Acquisitions and Takeovers Amendment Regulation 2012 (No.1) (Cth) (Regulation), which amends the Foreign Acquisitions and Takeovers Regulations 1989 (Cth) to extend the higher monetary threshold of $1,078 million (to be indexed annually) for investments in non prescribed sensitive sectors by US private investors to NZ private investors, commenced on 1 March 2013.
New NZ regulations similarly increased the monetary threshold for most acquisitions of ‘significant business assets’ by Australian private investors to $NZ477 million (to be indexed annually) from 1 March 2013. These changes do not apply to investments involving ‘sensitive land’.
For further information, see the G+T January Corporate Advisory Update.