The Bundeskartellamt has officially blocked Tönnies International Management GmbH's plan to acquire multiple companies and stakes from Vion GmbH and Vion Beef B.V., particularly slaughterhouses located in Buchloe, Crailsheim, and Waldkraiburg.

Andreas Mundt, President of the Bundeskartellamt, expressed that the acquisition would significantly strengthen Tönnies' market position to the detriment of farmers and smaller competitors in the affected regions. Tönnies, already a dominant player in pig slaughtering and processing in Germany, would have gained a leading position in beef as well, reducing options for producers and buyers alike.

Tönnies, based in Rheda-Wiedenbrück, is a family-owned company specializing in the slaughtering and processing of pigs and cattle, employing over 20,000 people and generating approximately €7.8 billion in revenue in 2023. Vion Food Group, the seller, is an international manufacturer of meat and plant-based alternatives, with a revenue of around €5.1 billion in 2023.

Vion announced in June 2024 its intention to withdraw from its operations in Germany and sell its locations. Since early 2024, the Bundeskartellamt and the European Commission have been reviewing several merger proposals related to Vion's former sites, with some already approved.

The proposed acquisition would have impacted various competitive areas of slaughtering and marketing of meat, including the collection of cattle and pigs for slaughter, the slaughtering process itself, and the marketing of meat products. The relevant markets for slaughtering are regionally defined based on the catchment areas of the slaughterhouses, with distances ranging from 200 to 300 kilometers.

After extensive investigations, the Bundeskartellamt concluded that the merger would lead to the creation or strengthening of a dominant market position for Tönnies in several regional slaughter markets in Southern and Eastern Germany. Vion is currently the market leader in beef slaughtering in Southern Germany, and the acquisition would have allowed Tönnies to achieve market shares exceeding 40% in the catchment areas of the affected slaughterhouses.

The merger would also enhance Tönnies' dominance in the regional pig slaughter market, where it already holds a significant market share. The authority noted that Tönnies' market leadership would be further solidified through the acquisition of the Crailsheim site, which overlaps with its existing market area.

Factors contributing to Tönnies' potential market dominance include barriers to entry for new competitors, economies of scale, and limited alternatives for farmers. The authority communicated its competitive concerns to the parties involved in March 2025, leading Tönnies to propose commitments to address these issues, which the Bundeskartellamt deemed insufficient.

The decision by the Bundeskartellamt is not yet final, and an appeal can be filed, which would be decided by the Higher Regional Court of Düsseldorf.