Premium Food Group (PFG), formerly known as Tönnies, has filed an appeal against the German Federal Cartel Office's decision to block its acquisition of Vion Food Group's beef processing sites in Southern Germany, citing concerns over market dominance.

The Cartel Office prohibited the acquisition in June 2025, arguing it would give PFG a dominant position in both pork and beef markets, which could harm competition and farmers.

PFG plans to buy several Vion locations, including beef slaughterhouses in Buchloe, Crailsheim, Hilden, and Waldkraiburg, as Vion aims to exit the German market largely.

The company is considering applying for a ministerial exemption from the Federal Ministry of Economics, which could allow the deal if there is significant public interest.

Tönnies is also exploring other strategies, such as divesting certain locations and seeking alternative acquisitions like a stake in The Family Butchers, to address monopoly concerns.

Several local farmers and the Bavarian Ministry of Agriculture support the acquisition, fearing that Vion's withdrawal could disrupt supply chains and increase transport distances for cattle.

The acquisition would have included four slaughterhouses and two hide processing plants, but the Cartel Office's ruling has complicated these plans.

Tönnies has highlighted rising beef prices and concerns over foreign meat companies entering the German market, which could impact domestic agriculture.

Vion has reassured that the Cartel Office's decision won't immediately affect its operations as it evaluates its next steps.

Maximilian Tönnies, a managing partner at PFG, maintains confidence in their legal position and argues that their offer would promote competition and public welfare.

The German market is seeing potential supply shortages, as Vion plans to shift focus away from Germany to the Benelux countries, raising concerns about food security.

The broader context includes PFG's ambitions to expand, including a majority stake in The Family Butchers, and its status as the largest food supplier in Germany, employing 21,000 people and generating €7.8 billion annually.