Premium Food Group Appeals Germany Watchdog’s Vion Deal Ruling

Vion agency motion successful Tilburg, The Netherlands, 17 September 2020. Credit: Lithuaniakid/Shutterstock.com

Germany’s Premium Food Group is to effort and overturn nan rejection of its move to bargain mill assets from chap nutrient awesome Vion.

Last month, Germany’s title authority blocked Premium Food Group’s bid to get works assets successful nan state owned by Netherlands-based adjacent Vion.

The Bundeskartellamt said nan woody would deed farmers and smaller rivals.

Vion began a round of meat-asset closures successful Germany successful 2023 and later announced a scheme to exit nan marketplace completely. It formed an agreement successful January last twelvemonth pinch Premium Food Group for 2 of its plants followed by more in September of that year.

The planned disposals included slaughterhouses successful Buchloe, Crailsheim and Waldkraiburg, on pinch a deboning installation successful Hilden and 2 hide-processing plants successful Memmingen and Eching-Weixerau.

Premium Food Group wants nan Higher Regional Court successful Düsseldorf to reappraisal nan decision. The institution is besides considering further steps, including applying for ministerial authorisation from Germany’s Federal Ministry for Economic Affairs and Climate Action.

“We not only judge that nan appraisal of our marketplace position is inaccurate but we besides spot an overriding nationalist liking astatine stake,” Premium Food Group said successful a statement.

“This matter concerns thing little than nan early of sustainable livestock farming successful confederate Germany. Since nan Federal Cartel Office’s antagonistic ruling, we person received galore urgent appeals from farmers and different stakeholders expressing their dismay and concern. We truthful consciousness it is our work to person our sustainable semipermanent conception for agriculture and nan acquisition targets – arsenic good arsenic our committedness to important finance – reviewed, if necessary, astatine nan ministerial level. However, we stay hopeful that a mutually satisfactory solution tin beryllium recovered for each parties involved.”

Providing further specifications connected its decision, nan Bundeskartellamt said successful June it had asked for feedback from competitors and nutrient customers successful Germany. The organisation said it had “reached nan conclusion that nan merger would consequence successful nan creation aliases strengthening of a ascendant position for [Premium Food Group] successful respective location bulldoze markets successful confederate and eastbound Germany”.

It said Vion was nan “market leader” successful cattle slaughtering successful confederate Germany, Premium Food Group would clasp complete 40% marketplace stock successful nan Buchloe, Waldkraiburg and Kempten catchment areas, “far exceeding” smaller competitors, nan Bundeskartellamt added.

The merger would besides fortify Premium Food Group’s power successful pig slaughtering successful nan Weißenfels area by adding Crailsheim, whose catchment area overlaps, nan regulator added.

In March, Bundeskartellamt said it sent a connection of objections to Premium Food Group and Vion outlining nan title concerns. Then successful April, nan companies projected divestment and leasing of accommodation to designated acquirers to reside concerns, nan regulator added.

However, it rejected those commitments arsenic “not capable” of preventing Tönnies’ dominance.