The Bundeskartellamt has granted approval for Tönnies International Management GmbH, part of the Premium Food Group (PFG), to acquire sole control over IFF Ventures GmbH & Co. KG, which owns The Family Butchers group. This decision comes after a thorough examination of the merger's implications in the German sausage and ham production market.

Andreas Mundt, President of the Bundeskartellamt, noted the significance of the merger as it involves the largest sausage manufacturer in Germany acquiring the second-largest. However, the authority concluded that the merger did not meet the criteria for prohibition, as the combined market shares for most sausage types would remain below 40 percent, ensuring sufficient competition.

PFG reported a global revenue of €7.3 billion in 2023, with €4.1 billion generated in Germany, making it the largest food supplier to German retailers. The Family Butchers, formed from the merger of Kemper and Reinert in 2020, generated approximately €700 million in revenue in 2023.

The Bundeskartellamt's investigation covered various sausage and cured meat product categories, analyzing over 20 distinct product markets. The findings indicated that the markets are primarily confined to Germany, with minimal imports affecting competition.

Despite the merger, the combined market shares remain under 40 percent across most relevant markets, indicating that numerous other producers exist. The authority emphasized that the competitive pressure from retailers with their own sausage production capabilities, such as Edeka and Rewe, would provide sufficient alternatives for consumers.

Ultimately, the Bundeskartellamt determined that the merger would not significantly impede competition, as adequate alternative sourcing options would remain for retailers.