When the German cartel agency halted the sale of three cattle slaughterhouses in mid-June, it seemed like a major setback for Vion. After all, who else but the well-funded Tönnies would be in a position to acquire them? An unexpected turn of events followed. The cooperative Westfleisch sensed its opportunity and joined the fray, while Tönnies was certainly not written off yet.
Vion's German operations have been a major hindrance in recent years. The prestigious American consultancy McKinsey was hired for a substantial sum and considered it best to focus on the Benelux region in the future. A "for sale" sign went up, and Tönnies quickly jumped at the chance. From a distance, it seemed like an ideal match, except that the German cartel agency believed that Tönnies would become very dominant, which is why the deal was canceled. blocked.
Through the media
For a moment, it seemed Vion would be left disillusioned, but that quickly proved to be a major misconception. Meat baron Clemens Tönnies is a die-hard go-getter who refuses to accept the ruling. He's trying to force the deal through through an appeal. And he's no longer the only contender. The cooperative Westfleisch from Münster has joined the fray and wants to expand its operations to southern Germany, where it currently has little presence. It's striking that this rock-solid cooperative is likely deliberately playing the game through the media plays to get the game on the wagon.
The battle has turned into a kind of public horse race between Germany's two largest pig slaughterhouses. Last week, both slaughterhouses presented their plans at a meeting organized by a trade association of livestock farmers in southern Germany. Both companies used their charm to win over farmers. Clemens Tönnies presented himself as a hardworking entrepreneur who still gets up at 41,4:XNUMX a.m. every day, even though he's past retirement age. Wilhelm Uffelmann, CEO of Westfleisch, emphasized that southern German livestock farmers would be best off with a cooperative as buyer, which, according to him, is financially extremely solid with a solvency ratio of XNUMX%.
Vion considers longer stay
The saying goes: When two dogs fight over a bone, the third one goes with them. That could very well be true in this case. There is also reportedly interest from France and Ireland. Moreover, Vion is less eager to sell its slaughterhouses. In the company's own internal magazine for Germany, ProAgrar, CEO Tjarda Klimp states that a longer stay in Germany is also not out of the question. Vion is certainly not feeling any external pressure and has received support from the better resultsAccording to the company, the German slaughterhouses are operating profitably and major investments are not necessary.
In any case, the bidding process will be a long, drawn-out battle. Vion cannot currently formally negotiate with Westfleisch while Tönnies's appeal is pending. A ruling could easily take a year or longer. Insiders in German media say that Tönnies's chances are slim, but there may still be a way forward. If there is a significant economic advantage or a compelling public interest, Tönnies could submit a request to the Ministry of Economic Affairs to override the ruling.
After the disappointing ruling from the cartel agency, Vion is currently maintaining control of the conflict between Germany's major slaughterhouses. This means its departure from Germany won't be an inglorious exit with a bad deal; the pot of gold is still in sight. And perhaps Vion will decide to stay after all, although that seems like a clever negotiating tactic at the moment.