UPDATED 6.34pm Formal approval has been given for a controversial investment in a major Kiwi meat processing co-operative.

LISTEN ABOVE: Silver Fern Farms chairman Rob Hewett spoke to Larry Williams

The Government's approved Shanghai Maling's $261 million bid to acquire a 50 percent stake in Silver Fern Farms Limited.

The decision making ministers, Louise Upston and Paula Bennett, have said they're satisfied the purchase will create substantial and identifiable benefit for New Zealand.

The ministers say the deal will put the company in a better financial position and allow it to increase its exports.

Silver Fern Farms chairman Rob Hewett is welcoming the Overseas Investment Office's decision.

"It's good for the company. It's good for our shareholders and it's going to be very good for New Zealand.

He said Shanghai Maling’s financial investment will make Silver Fern Farms the financially strongest company in the New Zealand meat industry with the ability to confidently invest in our business.

He said the partnership will help them accelerate their growth, and increase their sustainable value to shareholders and farmer suppliers over time.

Finance Minister Bill English is a former farmer shareholder in Silver Ferns farms and said the buy-in by Shanghai Maling will result in a much needed injection of cash.

"The meat industry, generally, has, when times are tougher struggled for the capital to help it lift value in its product. China's become a big customer and they seem to have taken those issues into account with this deal."

But New Zealand First leader Winston Peters is unhappy the approval's been given, saying the Chinese investor's not in the financial state it's claimed, nor has the company's financial state been properly represented.

He said the Government and the Overseas Investment Office haven't acted appropriately.

"They're interested in doing the government's job because they've been hand picked to do just that. To be a rubber stamp."

But Land Information Minister Louise Upston said they've checked it thoroughly.

"Any application there is good character assessment. As you would expect in a case like this there's been a lot of examination into that and in terms of the recommendation, we're satisfied around good character."