New Zealand's refuse collection and landfill business might soon be almost entirely Chinese-owned with the announcement Monday that Australia's Transpacific Industries Group is to sell its New Zealand business.
A statement from Transpacific said it had entered into an agreement to sell Transpacific New Zealand, which operates under the Waste Management name, to a wholly-owned subsidiary of the Beijing Capital Group for 950 million NZ dollars (793.72 million U. S. dollars).
The deal was expected to be completed by the end of June if it cleared the approval process with the New Zealand Overseas Investment Office and Chinese regulators, said the statement.
Beijing Capital Group, listed as one of China's Top 500 Enterprises, is a state-owned infrastructure enterprises with specialist expertise in water treatment, waste management, mass transit railway and toll roads, and a prominent real estate developer, said the statement.
Transpacific Industries Group CEO Robert Boucher said Transpacific New Zealand was "a solid business" and its sale would enable to group to fund future investments with a strong capital base.
"The sale of our New Zealand business gives Transpacific increased financial flexibility. We will look to enhance our Australian waste management businesses, capture long term growth opportunities and generate improved shareholder value," Boucher said in the statement.
Waste Management and its smaller rival, Envirowaste, operate all of New Zealand's seven major landfills between them and the vast majority of the country's refuse collection.
Envirowaste is owned by Hong Kong-based Cheung Kong Infrastructure.