New Zealand – GVT Overseas Investment Act

New Zealand – GVT Overseas Investment Act

On 19 November 2019, NZ GVT updated on proposed changes to OIA re national interests.

  • New test to apply to sales of most sensitive and high risk assets to overseas buyers.
  • Assets such as ports and airports, telecommunications infrastructure, electricity and other critical infrastructure are not currently assessed through a national interest lens.
  • Call in power will apply to sale of most strategically important assets, such as firms developing military technology, direct suppliers to defense and security agencies.
  • Power to be used only to control investments posing significant risk to national security or public order, tests could also be used to control investments in media entities, etc.
  • Enforcement powers to be also improved with maximum fixed penalties for not complying rising from $300,000 to $10 million for corporates.
  • Reforms will apply to all overseas investors, irrespective of where they are from.
  • A bill implementing the changes is expected to be introduced in early 2020.