Tönnies allocates German Vion locations to Westfleisch

A strange twist has occurred in the sale of Vion's remaining three German locations. Tönnies is willing to cancel the deal, provided that competitor Westfleisch buys the locations.

In principle, the deal between Tönnies and Vion to acquire the cattle slaughterhouses in Buchloe and Waldkraiburg, and the combined beef and pork slaughterhouse in Crailsheim, was finalized. However, the German Cartel Office put a stop to this in June. The regulator had argued that Tönnies' influence in southern Germany would become too great. Initially, Tönnies refused to budge and filed an appeal. Vion decided to wait out that process and continue operating its own business in the meantime. Meanwhile, Westfleisch announced itself through the media as a potential buyer.

German media reported that Tönnies withdrew as a buyer yesterday. This happened in a curious way. At a German agricultural conference, Clemens Tönnies openly stated that he was prepared to withdraw as a buyer if Westfleish became the new buyer. Interestingly, Westfleisch CEO Wilhelm Uffelmann was also on the panel with him. "If you promise here that you will take over the three factories, we will terminate the contract with Vion immediately," said Tönnies. "Then we will," replied the Westfleisch CEO and public. Later that evening, Uffelmann told the German Handelsblatt newspaper that he would work with Vion on an affordable solution that would benefit farmers in Bavaria.

Vion announced yesterday afternoon in a short press release that it had held discussions with Tönnies in recent days and that other parties could again apply to take over the three slaughterhouses. The company claims that several interested parties have expressed interest. The company declined to comment further when asked. 

In the internal company magazine for Germany, ProAgrar, CEO Tjarda Klimp stated this summer that a longer stay in Germany is also not out of the question. Opposite Boerenbusiness said Klimp in July"The sale of these parts of the company (the three German locations, ed.) is part of a long-term strategic decision. However, the sale is not urgent, as the divisions in question are profitable."

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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