Land Information Minister Maurice Williamson and Associate Minister of Finance Dr Jonathan Coleman this morning said they had accepted the recommendation of the Overseas Investment Office (OIO) to grant consent to Milk New Zealand Holding Limited (Milk New Zealand), a subsidiary of Shanghai Pengxin Group, to acquire the 16 Crafar farms.

"It is clear that all criteria under sections 16 and 18 of the Overseas Investment Act 2005 have been met, therefore we accept the recommendation of the OIO to grant consent," Williamson said.

"We are satisfied that Milk New Zealand's application for consent meets the criteria set out in the Act," Coleman said.

The approval follows receiver KordaMentha's acceptance in late 2010 of Milk New Zealand's bid for the farms.

The sale to Shanghai Pengxin would "further support the supply of high quality dairy products" in to the Chinese market and help set the foundations for further economic and export opportunities with China.

"Stringent conditions" would ensure that Milk New Zealand's investment led to "substantial and identifiable benefits to New Zealand".

More than $14m would be invested into the farms making them more economically and environmentally sustainable.

The Nga Herenga and the Te Ruaki pa sites would also be protected and there would be improved walking access to the Pureora Forest Park and Te Rere falls.

An on-farm training facility for dairy farm workers would also be established.