Premium Food Group: Cartel office prohibits the takeover of vion battle yards

The East Westphalian Premium Food Group (formerly Tönnies Group) must not take over the slaughterhouses of the Dutch Battle Group Vion as planned. The Bundeskartellamt has forbidden it to acquire several companies and investments from Vion GmbH and Vion Beef BV, in particular the slaughterhouses in Buchloe, Crailsheim and Waldkraiburg. This was announced by the competition authority.

The takeover of the Vion locations would have increasingly strengthened the market position “to the disadvantage of farmers and the remaining smaller competitors in the affected regions,” said Kartellamat President Andreas Mundt. In addition to its already dominating position in slaughtering and processing pigs in Germany, the Premium Food Group would also have gained a leadership position in the cattle area.

As a reason, it was said that the takeover would reduce the alternative options of the producers and customers and thus expand the market position of the group. “Disadvantages would therefore also have been created nationwide for buyers of slaughter products.” The decision of the cartel office has not yet been final, against him a complaint can be filed.

“A hard blow for the farmers”

The Premium Food Group reacted disappointed to the decision. “This decision is a hard blow for farmers in southern Germany who have been hoping for a clear decision -making decision for months,” said a statement. The reason for the authority is now checked and will then decide on possible remedies.

Bavarian Minister of Agriculture Michaela Kaniber also regretted the news. “This step is absolutely incomprehensible to me,” said the CSU politician. This prevented an important step to secure sufficient slaughter capacities and short battle paths.

The Dutch slaughter company Vion announced that the negative decision of the Federal Cartel Office was taken into account and respect the result. The decision has no direct impact on day-to-day business, further steps would now be examined, said Vion boss Tjarda Klimp.

Withdrawal leads to shifts on the meat market

Vion is a manufacturer of meat, meat products and vegetable meat alternatives. According to the cartel office, the company is the previous market leader in the area of ​​cattle slaughter in southern Germany. Last year, the company announced that they want to withdraw from Germany and sell locations. Some merger projects have already been released.

According to the interest group of the pig farmers in Germany (ISN), the withdrawal of Vion leads to shifts on the German market. The distance between the two biggest butchers on the competitors is clearly growing. According to ISN, the Premium Food Group and West meat come together to a market share of around 45.1 percent.

Germany’s largest meat group Tönnies renamed Premium Food Group at the beginning of this year. This was justified with the change from the pure meat company to a food company with a wide range of products. The company does its business primarily with meat and sausage products, but also with services in food transport as well as soups, sauces, pharmaceutical raw materials and veggie products.