In June 2024, Vion announced its plans to discontinue most of its business activities in Germany and to sell its local facilities. Since early 2024, both Bundeskartellamt and the European Commission have assessed several merger proposals involving former Vion sites, with previous transactions being approved. However, this proposed acquisition raised significant competition concerns.
The planned takeover covers various stages of the meat supply chain—procurement of cattle and pigs, slaughtering, meat cutting, and the sale of meat products—which must be evaluated separately from a competition perspective.
Bundeskartellamt concluded that the acquisition would lead to the creation or strengthening of Tönnies’ dominant position in several regional slaughter markets in southern and eastern Germany. Specifically, in the catchment areas of the Buchloe, Waldkraiburg, and Kempten slaughterhouses, Tönnies would exceed a 40% market share, far ahead of significantly smaller competitors.
In the regional pig slaughtering market defined by the catchment area of the Weißenfels slaughterhouse, the merger would further reinforce Tönnies’ existing dominance. By acquiring the Crailsheim site, whose operational area overlaps with that of Weißenfels, Tönnies would further expand its lead.
The acquisition would also strengthen Tönnies’ position as Germany’s leading seller of pigs and pork and would elevate it to the leading position in cattle sales (whole or half animals).
The parties were officially informed of the authority’s concerns in March 2025. In late April, they submitted proposed commitments aimed at addressing these concerns, including the divestiture or leasing of certain facilities to buyers designated by Tönnies. However, Bundeskartellamt deemed these commitments inadequate, as the proposed acquirers were not truly independent from the Tönnies Group and the commitments failed to eliminate the competitive risks.
The decision is not yet final and can be appealed before the Higher Regional Court in Düsseldorf.
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