Takeover poker: Meat mogul Tönnies provides in | EUROtoday

Germany’s largest meat firm Premium Food Group (PFG) is surprisingly giving up the takeover battle for the German beef slaughterhouses of its Dutch competitor Vion. The managing associate Clemens Tönnies provides to terminate the acquisition settlement concluded with Vion – mixed with the dedication of the competitor Westfleisch to take over the related places in southern Germany. “This is not about Tönnies. This is about Bavaria and the Bavarian farmers,” mentioned the entrepreneur on the so-called autumn dialogue of the Bavarian Farmers’ Association in Herrsching. “The hang-up must come to an end.”

The standoff refers back to the dispute with the Federal Cartel Office. The competitors authority had prohibited PFG from the agreed takeover after 9 months of merger management and justified its determination with the dominant market place that PFG would obtain by way of the acquisition of slaughtering, reducing and conceal processing vegetation in Crailsheim, Buchloe and Waldkraiburg. The household enterprise has lodged a grievance in opposition to this with the Düsseldorf Higher Regional Court and has additionally introduced that it’ll look at the opportunity of acquiring ministerial approval. “We will fight for the locations and exhaust all legal means.”

The business large, which might now not solely have been the biggest pig slaughterer in Germany with the deal, however would even have change into the main cattle slaughterer, nonetheless believes that it’s in the precise. “The company would still have seen a good chance of getting action via a decision at the Higher Regional Court or via a possible ministerial approval,” says a press release from the Premium Food Group. However, this prices time, which agriculture in southern Germany doesn’t have.

There are at present not many giant cattle slaughterhouses left in southern Germany. There is subsequently concern in politics and agriculture about provide bottlenecks and a structural break. As a part of a strategic realignment, Vion desires to withdraw from the extremely aggressive German market and as an alternative focus extra on the Benelux international locations. And that would additionally result in closures if the takeover fails. “In the past few weeks and months we have developed many new ideas for a solution because we believe in the region. But there were always disruptions,” says Patriarch Tönnies, with out wanting to enter element.

This may imply each the authorities, with whom cooperation is reportedly proving troublesome. But additionally competitor Westfleisch. The cooperative from Münster initially didn’t bid within the struggle for the Vion places, however later expressed curiosity and railed in opposition to Tönnies as a purchaser in a letter to Federal Minister of Economics Katherina Reiche (CDU).

Now Tönnies is making a U-turn after his earlier pithy phrases – and on the similar time is placing the competitors below stress. “If you promise here in front of the entire team that you will take over the three companies, we will withdraw from the contract with Vion with immediate effect,” provided the entrepreneur within the route of Westfleisch, whose CEO Wilhelm Uffelmann was additionally on the rostrum on the autumn dialogue. His reply: “Okay, then we’ll do it.”

Westfleisch has now confirmed its curiosity in an official assertion, however is much less definitive. “Westfleisch keeps its word and is ready to work together with Vion on a viable solution for the benefit of Bavarian agriculture,” studies the corporate. However, concrete statements can’t be made as a result of Westfleisch has not but been in a position to look into Vion’s books.

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This ought to now occur as rapidly as potential. “After the Federal Cartel Office prohibited the planned sale of the Vion locations to the Premium Food Group, the two parties have agreed in the last few days on how the way can be cleared for other potential interested parties,” studies Vion. So far this has failed as a result of current buy settlement between Vion and the Premium Food Group. However, a cope with Westfleisch isn’t a performed deal. “Some interested parties have already contacted us,” says Vion. “We will carefully examine all serious suggestions. The aim is to find a long-term, viable solution.”

Already within the first spherical of bidding there was reportedly curiosity from meat producers from Ireland, France and Austria. Experts worry that worldwide companies have no real interest in getting into the German market. “They would only strike to secure access to raw materials,” says Klaus Martin Fischer, associate on the consulting agency RSM Ebner Stolz. The slaughtered cattle would then be transported overseas for additional processing and thus withdrawn from the German market. Tönnies additionally just lately warned about overseas patrons and the “undersupply of meat” that would outcome from this.

Beef is in third place on the meat menu in Germany behind pork and poultry. Per capita consumption was a superb 9 kilograms final 12 months, in line with figures from the Federal Information Center for Agriculture (BZL). In 2024, it was round 28.4 kilograms for pork and 13.6 kilograms for poultry.

This article was written for the WELT and Economic Competence Center Business Insider created.

Carsten Dierig is a enterprise editor in Düsseldorf. He studies on commerce and shopper items, mechanical engineering and the metal business in addition to medium-sized firms.