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Background Family Tonnies

Family feud within Tönnies flares up again

30 July 2019 - Wouter Baan

Cousin Robert and uncle Clemens Tönnies buried the hatchet for good in 2017, but barely 2 years later the bomb exploded again. Robert even insists on the sale of the German meat group, but Clemens is firmly against that.

It has not been butter between Robert and Clemens Tönnies for years. Where one wants to turn left, the other goes straight. Robert (41) is the son of founder Bernd Tönnies, who died in the 90s, the brother of 63-year-old Clemens. Both own 50% of the shares of the largest meat company in Europe and are therefore literally stuck with each other.

Bumblebees for years
In 2017 the hatchet Buried 'for good', after no fewer than 5 lawsuits were fought over who is now boss. Although it was considered at the time to split up the meat group, Clemens and Robert (on the basis of equality) continued to work together. At the time, however, an external advisory council was created that provides advice during new disputes and even has decision-making powers in the event of an escalation.

At the same time, it was also legally established that the holding company would still be sold if there was another dispute. This moment now seems to have arrived. There is a dispute about a recent takeover. Without Robert's knowledge, Clemens recently took over 2 German sausage factories from the Swiss Bell Food. Robert then went to court to undo the deal. Clemens defends himself and says that management had approved the takeover. 

Sales unnegotiable 
For Robert, the measure is now full. He therefore intends to sell the group, but Clemens does not want to hear about it. Robert invokes the agreement that was drawn up in 2017. In the German media, Clemens says through his spokesperson that the sale of the meat group is not negotiable for him and his son Maximilian (the intended successor).

According to him, Tönnies is well on the map and can refute excellent figures. He points to the 16.000 people who work at the German meat company.

Buy out? 
The end of this family feud will become apparent in the coming months. A legal wrangle, which the media can feast on, does not seem unlikely. The survival of the German meat group in its current form is in any case at risk. 

Possibly one buys out the other, but then Robert or Clemens will probably have to come up with a lot of money. In 2018, Tönnies still had a turnover of €6,65 billion. The meat group is generally reluctant to share profit figures. 

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Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

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