Premium Food Group To Rip Up Vion Deal – If Westfleisch Steps In

Premium Food Group managing partner Clemens Tönnies. Credit: Premium Food Group

Premium Food Group has offered to locomotion distant from its scheme – truthful acold blocked by regulators – to bargain much Vion assets successful Germany arsenic agelong arsenic chap nutrient awesome Westfleisch steps up to nan plate.

In June, Germany’s title authority blocked Premium Food Group’s bid to get different batch of assets successful nan state owned by Netherlands-based adjacent Vion.

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

Premium Food Group, formerly known arsenic Tönnies Group, had said it would effort to overturn nan determination done nan German courts but, this week, put guardant an different proposal for rival nutrient processor Westfleisch to measurement in.

On Monday, astatine a farming convention successful Bavaria successful confederate Germany, Premium Food Group managing partner Clemens Tönnies offered to rip up nan projected woody pinch Vion if Westfleisch committed to return complete nan sites. “This is not astir Tönnies. This is astir Bavaria and Bavarian farmers,” Mr Tönnies said during a sheet discussion. “The uncertainty must travel to an end.” 

Premium Food Group had been looking to bargain slaughterhouses successful Buchloe, Crailsheim, and Waldkraiburg, arsenic good arsenic a deboning installation successful Hilden and 2 hide-processing plants successful Memmingen and Eching-Weixerau.

The institution believed nan deal, rebuffed by Germany anti-trust assemblage Bundeskartellamt, still had “a bully chance of success” done nan courts aliases imaginable ministerial approval, a spokesperson said.

“However, this would person taken moreover much time, which nan cultivation assemblage successful confederate Germany does not have,” he added.

Approached by Just Food for Westfleisch’s stance, nan institution said successful a statement: “We invited nan determination of nan Premium Food Group to bring an extremity to nan stalemate concerning nan restructuring of nan confederate German slaughterhouse building and to clear nan measurement for caller discussions pinch Vion. As for nan domiciled of Westfleisch, we are presently incapable to make immoderate actual statements, arsenic we person not yet had nan opportunity to reappraisal nan documents successful detail.”

Vion began a round of meat-asset closures successful Germany successful 2023 and later announced a scheme to exit nan marketplace completely. 

In 2024, nan past Tönnies Group struck a deal to bargain Vion’s cattle slaughterhouse and pre-packed installation successful Altenburg successful nan Thuringia region of Germany and get Ahlener Fleischhandel, a ham processing works successful Westphalia.

In May this year, Premium Food Group announced plans to adjacent nan ham accumulation site.

On Monday, Vion issued its ain connection connected Premium Food Group’s connection to Westfleisch.

“Following nan prohibition of nan planned transaction of Vion sites to Premium Food Group by nan German Federal Cartel Office, Vion and PFG person discussed successful caller days really to springiness measurement to different parties to prosecute pinch Vion regarding their interests.

“Several willing parties person already approached us, and we will cautiously measure each superior proposals to find nan champion semipermanent solution – for our business, our teams, and our partners successful nan region.”