The Bundeskartellamt ruled that the acquisition would negatively impact farmers and smaller competitors.
Initially, Premium Food Group, previously Tönnies Group, considered challenging this decision in the German courts. However, this week, they made a unique proposal for Westfleisch to assume responsibility.
Speaking at a farming conference in Bavaria, Premium Food Group managing partner Clemens Tönnies stated his readiness to terminate the deal with Vion if Westfleisch committed to acquiring the locations. “This is not about Tönnies. This is about Bavaria and Bavarian farmers,” Mr. Tönnies emphasized during a panel discussion. “The uncertainty must come to an end.”
Premium Food Group aimed to purchase slaughterhouses in Buchloe, Crailsheim, and Waldkraiburg, along with a deboning facility in Hilden and two hide-processing plants in Memmingen and Eching-Weixerau.
Despite the Bundeskartellamt’s rejection, the company believed the deal might still succeed through legal channels or potential ministerial approval, as stated by a spokesperson. “However, this would have taken even more time, which the agricultural sector in southern Germany does not have,” he added.
When we asked Westfleisch’s opinion, the company replied: “We welcome the decision of the Premium Food Group to bring an end to the stalemate concerning the restructuring of the southern German slaughterhouse structure and to clear the way for new discussions with Vion. As for the role of Westfleisch, we are currently unable to make any concrete statements, as we have not yet had the opportunity to review the documents in detail.”
Vion initiated a series of asset closures in Germany in 2023 and later announced its intention to exit the market entirely.
In 2024, Tönnies Group finalized a deal with Vion to acquire its cattle slaughterhouse and pre-packed facility in Altenburg, as well as a ham processing plant in Ahlener, Westphalia.
In May, Premium Food Group announced the closure of the ham production site.
This Monday, Vion also released a statement regarding Premium Food Group’s proposal to Westfleisch. They stated: “Following the prohibition of the planned transaction of Vion sites to Premium Food Group by the German Federal Cartel Office, Vion and PFG have discussed in recent days how to give way to other parties to engage with Vion regarding their interests. Several interested parties have already approached us, and we will carefully assess all serious proposals to determine the best long-term solution—for our business, our teams, and our partners in the region.”
