Premium Food Group's Ambitious Acquisition Thwarted by Cartel Office
Regulator restricts acquisition of Vion's meat processing plants - Measures under consideration remain undecided by the Commission.
Here's a lowdown on the thwarted ambition of the Premium Food Group (formerly known as Toennies Group) to acquire Vion Slaughterhouses in Southern Germany.
The plan, if executed, would've given the Premium Food Group a major boost in the market, solidifying its leading position in the slaughtering and processing of cattle. However, the mischief-makers at the Federal Cartel Office in Bonn had other ideas.
In a regulatory move, the Cartel Office stepped in and blocked the acquisition of several companies and participations of Vion GmbH and Vion Beef B.V., which includes the slaughterhouses in Buchloe, Crailsheim, and Waldkraiburg. According to Cartel Office President Andreas Mundt, the acquisition would've been detrimental to farmers and smaller competitors in the area.
The concern was that the acquisition would reduce alternatives for producers and customers, thus expanding the market position of the company. Customers of slaughter products might have also faced some unpleasant consequences nationwide.
Understandably, the Premium Food Group was less than thrilled with the decision. According to them, it's a brutal blow to farmers in Southern Germany who had been hanging on for a decision for months. They're now examining the reasoning of the authority and contemplating possible legal recourse.
The Dutch slaughtering company Vion, a meat, meat product, and plant-based meat alternative manufacturer, is the current market leader in the slaughtering of cattle in Southern Germany. Last year, Vion announced its intention to exit the German market and sell locations. Some merger plans have already been approved.
The withdrawal of Vion is causing shifts on the German market. The gap between the two largest slaughterhouses and the competitors is widening significantly. According to the Interest Group of German Pig Farmers (ISN), Premium Food Group and Westfleisch together have a market share of around 45.1 percent.
In January 2023, the Tönnies Holding changed its name to Premium Food Group. They explained the transformation from a pure meat company to a food company with a broad product range. The company mainly generates revenue from meat and sausage products but also services in the food transport sector, soups, sauces, pharmaceutical raw materials, and veggie products.
- Slaughterhouse
- Cartel Office
- Acquisition
- Toennies Holding
- Germany
- Bonn
- Southern Germany
- Federal Cartel Office
- Buchloe
- Crailsheim
- Waldkraiburg
- Andreas Mundt
- Cattle
- The Cartel Office's decision to block the acquisition of Vion Slaughterhouses in Buchloe, Crailsheim, and Waldkraiburg by the Premium Food Group, formerly known as Toennies Holding, in Bonn, could significantly impact the slaughterhouse industry in Southern Germany, affecting both farmers and smaller competitors.
- As the Premium Food Group and Westfleisch already control a substantial market share in Germany, the withdrawal of Vion from the local market and the subsequent widening gap between the two leading slaughterhouses may trigger a reevaluation of business strategies in the agricultural products and finance sector.
