Government clears Sealord sale

By PAULA OLIVER

A carefully constructed deal to sell half of Sealord to Japanese fishing interests cleared the final hurdle of Government approval yesterday.

The confirmation comes almost a year after Brierley Investments revealed that it wanted to sell its half share in the country's largest deepwater fishing company, and six months after the Government intervened to block a sale to a foreign owner.

Under the $207 million deal, Japanese fishing giant Nissui will take a half share in Sealord, partnering the Treaty of Waitangi Fisheries Commission.

But all Sealord's fishing quota - 23 per cent of the country's total - will stay in the commission's hands.

After controversially rejecting a Nissui attempt to buy into Sealord's quota last year, Fisheries Minister Pete Hodgson and Finance Minister Michael Cullen yesterday agreed to the deal.

"The commission's ownership of the quota is very important, as the policy of this and previous Governments is that our fisheries are a strategic asset that should remain in New Zealand hands," Mr Hodgson said.

"This is exactly the sort of overseas investment New Zealand wants and needs."

The Fisheries Commission and Nissui expressed confidence when they announced the deal in November that it would satisfy the Government enough to preclude further intervention.

Commission chief executive Robin Hapi told the Business Herald that he was relieved.

"A lot of hard work has gone into this, and we were extremely hopeful of approval. I thought we covered our ground well and that our application had all the necessary factors."

Throughout negotiations, the Fisheries Commission always appeared keen to get an overseas partner so it could expand Sealord internationally.

A local consortium, headed by Sanford, was among other bidders.

Sealord chief executive Phil Lough said the company could now move quickly into a value-added seafood strategy that was likely to bring hundreds of jobs and millions in extra revenue.

He said Sealord had increased its turnover from $300 million to $540 million in the past five years.

Nissui has interests in food processing and pharmaceuticals as well as fishing, and has a yearly turnover of about $10 billion.

It held an interest in Sealord from 1973 to 1990.