Toennies Facesobstacles in Expanding Slaughterhouse Empire
German competition authority forbids Tönnies from acquiring Vion's slaughterhouses - Aid decision remains pending by the Commission
Looking to muscle its way into the beef sector, family-owned Toennies has set its sights on Vion's slaughterhouses - a move met with resistance from the Federal Cartel Office. Here's the lowdown.
Based in Rheda-Wiedenbruck, Toennies slaughter, processes, and utilizes by-products from pigs, cattle, and various fowl. This powerhouse employs over 20,000 workers and boasted a turnover of approximately 7.8 billion euros in 2023. Vion announced plans to offload its German sites back in summer 2024.
The Federal Cartel Office has raised concerns about Toennies' aggressive expansion, pointing out its dominant position in the pig slaughtering and processing industry within Germany. If Toennies manages to acquire Vion's slaughterhouses, it would also grab the reins in the beef sector, as Vion is the market leader in southern Germany's cattle slaughtering.
ilo/pw
- Slaughterhouse
- Germany
- Federal Cartel Office
- Acquisition
- Bundeskartellamt
- Pigs
- Cattle
- Buchloe
- Ostallgäu
- Crailsheim
- Franconia
- Waldkraiburg
- Upper Bavaria
- Higher Regional Court of Düsseldorf
- Rheda-Wiedenbruck
- Beef
纳托谷公司正在撬动 beef 业 cuando It wanted to step up its game in the beef sector, family-run Toennies aimed to swoop in on Vion's slaughterhouses, but the Federal Cartel Office raised fierce objections. Here's the skinny.
Based in Rheda-Wiedenbruck, Toennies focuses on slaughtering, processing, and utilizing by-products from pigs, cattle, and different kinds of poultry. This powerplayer employs over 20,000 individuals and reported a turnover of approximately 7.8 billion euros in 2023. Vion revealed intentions to sell its German sites in the summer of 2024.
The Federal Cartel Office has raised alarm bells about Toennies' expansion strategy, noting its dominant position in pig slaughtering and processing within Germany. If Toennies seizes control of Vion's slaughterhouses, it would also capture the beef sector reins, as Vion is leading the pack in southern Germany's cattle slaughtering.
ilo/pw
- Slaughterhouse
- Germany
- Federal Cartel Office
- Acquisition
- Bundeskartellamt
- Pigs
- Cattle
- Buchloe
- Ostallgäu
- Crailsheim
- Franconia
- Waldkraiburg
- Upper Bavaria
- Higher Regional Court of Düsseldorf
- Rheda-Wiedenbruck
- Beef
Insights:
- Market Concentration: If the acquisition goes through as planned, it could lead to increased market concentration in the slaughtering industry, potentially diminishing competition among processors and strengthening Toennies' bargaining power with farmers and retailers.
- Regulatory Decisions: The decision on whether Toennies will be allowed to purchase Vion's slaughterhouses rests with the Federal Cartel Office. They must weigh competition implications, market dynamics, and regulatory conditions before making a final ruling.
- Asset Sell-Offs: The Bundeskartellamt may require Toennies to offload certain facilities to preserve fair competition in the beef sector, post-merger.
- As Toennies seeks to expand its presence in the beef industry through the acquisition of Vion's slaughterhouses, discussions within the manufacturing and financing sectors could revolve around potential implications for competition, especially considering Toennies' dominance in the pig slaughtering and processing industry.
- The German industry and business landscape may see changes if the Federal Cartel Office approves Toennies' acquisition of Vion's slaughterhouses, as this move could result in Toennies gaining a significant influence in both the pig and beef sectors, potentially impacting relationships with farmers, retailers, and other processors.
