Chinese get consent for Waste Management deal

Waste Management is New Zealand's largest waste disposal business.

Ownership change granted approval by NZ state authority

The Chinese owners of New Zealand's largest waste management and disposal business got official consent to increase their holding by about 20 per cent, in a deal listed as being worth US$234 million according to the Overseas Investment Office.

It has released details of the deal involving Waste Management and all the land holdings of that business were listed in that approval.

Read: full decision sheet from Overseas Investment Office

"The net effect of the transaction is to increase the Chinese public ownership of Waste Management NZ Limited by approximately 20 per cent," the office said.

"The proposed investment is part of a restructuring by the applicant's group of companies of its ownership interest in Beijing Capital Group NZ Investment Holding.

"The applicant and the vendor are all associated with, and directly or indirectly wholly or partially owned by, Beijing Capital Group Company Limited," the office said.

The applicant was Capital Environment Holdings and the vendors were Beijing Capital (Hong Kong) Ltd, 54 per cent owned by the Chinese Government, and BCG ChinaStar International, fully owned by the Chinese government.

The Chinese bought into Waste Management in 2014 in a deal reported then to be worth $950 million.

Waste Management's extensive New Zealand land holdings are listed in the application as:

• a freehold interest in approximately 78.2526 hectares of land at 125-127 Old Brighton Road, Fairfield, Dunedin;
• a freehold interest in approximately 182.7373 hectares of land at Redvale Landfill, Landfill Access Road, Dairy Flat, Auckland;
• a leasehold interest in approximately 2.2840 hectares of land at Redvale Landfill, Landfill Access Road, Dairy Flat, Auckland;
• a freehold interest in approximately 1.3207 hectares of land at 25 Inlet Road, Papakura, Auckland;
• a freehold interest in approximately 1.1877 hectares of land at 57-59 Port Road, Lower Hutt;
• a leasehold interest in approximately 0.1046 hectares of land at 53 Port Road, Lower Hutt;
• a leasehold interest in approximately 1.5390 hectares of land at 8 Daphne Street, Te Awamutu;
• a freehold interest in approximately 0.6405 hectares of land at 27 Seaview Road, Lower Hutt;
• a leasehold interest in approximately 0.6076 hectares of land at 108-110 Ostend Road, Waiheke Island;
• a leasehold interest in approximately 12.0000 hectares of land at 600 Island Road, Puketutu Island, Manukau Harbour, Auckland;
• a freehold interest in approximately 123.2446 hectares of land at Bruce Road, Bonny Glen, near Marton;
• a freehold interest in approximately 1,461.0016 hectares of land at Kate Valley Landfill, Mt Cass Road, Waipara, North Canterbury;
• another interest in approximately 55.9435 hectares of land at Horseshoe Bush Road, Dairy Flat, Auckland.

Waste Management says it is "New Zealand's leading provider of waste disposal services.
We collect, transport, treat, recycle, recover and dispose of residential, commercial, and industrial waste," it says.