Germany’s largest meat producer, Tönnies, is set to expand further by acquiring Vion’s beef operations in Germany. The deal, still subject to regulatory approval, marks Vion’s near-complete exit from the German market.
Tönnies, Germany’s largest meat processing company, plans to acquire the beef division of Dutch competitor Vion, marking a significant shift in the German meat industry. Vion is set to transfer its beef slaughter operations in southern Germany, including locations in Buchloe, Crailsheim, and Waldkraiburg, to Tönnies. Additionally, the meat processing plant in Hilden, North Rhine-Westphalia, and hide processing facilities in Memmingen and Eching-Weichenau will also be part of the deal.
The acquisition is still pending approval from antitrust authorities, but if successful, Tönnies will further strengthen its market position, particularly in beef processing, where it already slaughters between 7,000 and 8,000 cattle per week. This move would increase its beef production capacity by a third, making Tönnies the largest beef processor in Germany. Earlier this year, Tönnies acquired two smaller Vion facilities as part of its expansion.
Beef market remains competitive despite consolidation
Although Tönnies is already a dominant player in pork slaughtering, the beef market remains competitive, with companies like Westfleisch and Danish Crown also operating in Germany. Vion, which once processed 5,000 cattle per week, has been struggling to maintain its leadership in the market and has shifted its focus to its core operations in the Benelux region. Vion’s exit from Germany is part of a broader strategic realignment, with its CEO, Ronald Lotgerink, noting that the sale is a crucial step in this transition.
Vion’s German operations generated €1.2 billion in revenue in 2022, contributing to the company’s total turnover of €5.3 billion. Tönnies, which had revenues of €7.3 billion in 2023, could see this figure rise to €8 billion after the acquisition, although the company has not disclosed exact expectations. The antitrust review will not only focus on the overall size of the merger but also assess regional market structures and how it might affect supplier relationships.
Regulatory review and future plans
Despite Tönnies’ growing size, competition in the beef sector remains, with numerous smaller, family-run slaughterhouses also contributing to the market. Andreas Mundt, president of the Federal Cartel Office, recently commented that previous mergers in the meat industry had been thoroughly scrutinized but had not raised significant competitive concerns. He indicated that the Vion acquisition is unlikely to face major regulatory obstacles, as the deal is viewed as a restructuring merger aimed at stabilizing Vion’s operations.
Vion has faced operational challenges in Germany for some time. In January, it closed its largest pork slaughterhouse in Emstek, selling two facilities to Tönnies and one to the Uhlen Group. Industry experts have noted that Vion’s German plants are in need of significant investment, with estimates suggesting that tens of millions of euros will be required to modernize the facilities.
In a joint statement, Tönnies’ executives Heiko Bäzner and Markus Tiekmann emphasized the importance of maintaining beef processing infrastructure in southern Germany. They highlighted the deal’s potential to provide a “sustainable future” for local farmers, ensuring the continued viability of family-run farms that have been operating for generations.
