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Cartel office stops Tönnies takeover: Crailsheim slaughterhouse in danger!
The Federal Cartel Office prohibits Tönnies from taking over the Crailsheim slaughterhouse, which creates uncertainty for 600 employees.
Cartel office stops Tönnies takeover: Crailsheim slaughterhouse in danger!
The Federal Cartel Office has made a clear announcement: The takeover of the Crailsheim slaughterhouse by the Premium Food Group, formerly Tönnies, is a no-go. In a decision that affects many players in the meat industry, the plan was deemed questionable because it would have dangerously strengthened the Premium Food Group's market position. Around 600 employees at the Crailsheim slaughterhouse are unsettled by the news, while Vion, the current market leader in cattle slaughter in Germany, has unfortunately but respectfully acknowledged the decision. “The uncertainty has increased enormously,” said the deputy works council chairman Michael Kugler, horrified by the outcome.
Vion itself explains that the decision will currently have no direct consequences for day-to-day business. However, the company plans to closely analyze the situation and the cartel office's decision. The Premium Food Group was disappointed and will examine the Federal Cartel Office's justification before considering possible legal action. Loud SWR There was already a protest in April 2023 by around 80 animal protection activists who blocked access to the slaughterhouse.
Market situation in the meat industry
The Federal Cartel Office carried out comprehensive market analyzes and determined that the takeover of Vion by Tönnies would have led to a dominant market position in the affected regions. Tönnies, already the market leader in pig slaughtering, would have achieved a market share of over 40 percent in the catchment areas of the affected slaughterhouses with the takeover, which could significantly worsen the competitive conditions for farmers and smaller companies. President Andreas Mundt of the Federal Cartel Office expressed concern and explained that such concentrations of market power would likely be accompanied by market entry barriers and limited alternatives for farmers executed becomes.
Overall, Vion operates several locations in Germany and has announced that it will largely withdraw by June 2024. The slaughterhouse market in Buchloe, Crailsheim and Waldkraiburg was threatened by this takeover, and the Federal Cartel Office has been examining various merger projects surrounding Vion since the beginning of 2024, with some being approved but others not.
Impact on employees
The uncertainty among the approximately 600 employees in Crailsheim is noticeable. After the decision, the deputy works council chairman expressed concern about job prospects in the region. It remains to be seen how the situation will develop and what steps the Premium Food Group will ultimately take. The works council members are demanding a clear statement on the company's future course in the region. This leads to a feeling of uncertainty that extends across the entire industry.
In the midst of this complex situation, the question remains as to how competition in the industry will develop and whether the Federal Cartel Office will ensure a fair market. Will it soon be “there is enough space for everyone” again, or will a single brand soon dominate the market? The next few months will show which direction the industry is taking.