Cartel watchdog blocks deal between Vion and Tönnies

The German competition authority has put a stop to the proposed takeover of three Vion slaughterhouses by meat group Tönnies. It concerns the cattle slaughterhouses in Buchloe and Waldkraiburg and the combined beef and pig slaughterhouse in Crailsheim. Vion has announced that it will respect the decision. 

According to the cartel office, the takeover would lead to Tönnies gaining too much power in parts of southern and eastern Germany, with adverse consequences for both livestock farmers and competitors.

Already market leader in pork
Tönnies is already the market leader in the pork chain in Germany and has several large slaughtering locations in Weißenfels and Altenburg, among others. With the takeover of the Vion locations, the company would also acquire a leading position in the beef sector. According to the Bundeskartellamt, Tönnies' market shares would rise to well over 40% in some regions, with a significant gap to smaller players. 

For German livestock farmers this would mean that their options for supplying slaughter animals would be drastically reduced. For buyers of slaughter products, such as meat processors and retailers, the negotiating space would also be reduced due to Tönnies' greater market power.

Different than expected
For Vion, the ruling is a major blow. In June 2024, the company announced that it would largely withdraw from the German market and in September Last year a deal was made with Tönnies. Now Vion has to find a new buyer for the locations in question. Vion says in a response that it respects the decision and is investigating further steps. It also says that the German locations are profitable today. Although the decision is different than expected, I have full confidence in our ability to serve our markets while we analyze the decision of the cartel authority and determine our next steps," says Tjarda Klimp, CEO of Vion

The ruling has no impact on the (planned) sale of other German Vion locations. 

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.

w.baan@boerenbusiness. Nl

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