The New Zealand government on Friday vetoed a Canadian bid to buy a 40 percent stake in Auckland International Airport.
Shareholders have approved the Canadian Pension Plan Investment Board’s offer of 3.65 NZ dollars (2.88 U.S. dollars) a share, but the deal has been on hold, waiting for approval by the Overseas Investment Office.
New Zealand cabinet ministers Clayton Cosgrove and David Parker were overseeing the decision and had to consider whether the airport is a strategic asset.
In a statement released on Friday, the ministers said they were not satisfied the requirement that the deal benefits New Zealand has been met.
"Our role has been to apply the law as it is set out," the ministers said.
"Under the Overseas Investment Act 2005, Ministers are required to decline consent if they are not satisfied that all of the applicable criteria are met. In this case, we are not satisfied that the 'benefit to New Zealand' criterion is met," the ministers said in a statement.
The ministers have provided written reasons for the decision on the government's website but are not commenting further, saying they are following "normal protocol" on decisions regarding the Overseas Investment Act.
The Shareholders Association said a "No" decision could lead to the Canadian Pension group taking legal action.
Source:Xinhua
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