German meat giant Tönnies has struck a deal to acquire beef assets in the country from Netherlands-based peer Vion.
The transaction covers the “majority” of Vion’s beef business in Germany, a statement read.
Vion has been making moves to scale down in Germany and focus on its operations in the Benelux markets.
Tönnies is planning to acquire three Vion beef sites, one deboning facility and two hide-processing plants. The deal, signed for an undisclosed sum, is awaiting competition approval.
Should the transaction go through, Vion’s business in Germany will centre on a beef facility in Furth im Wald in the south of the country.
“This anticipated transaction is a significant step in Vion’s strategic realignment,” CEO Ronald Lotgerink said.
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“We promised to secure the most capable partners to ensure prosperous future development for the businesses to be divested and we also promised to increase our investments in the retained businesses. We now take another step in fulfilling our commitments.”
Tönnies, which is based in Rheda-Wiedenbrück in western Germany, has 19 sites in the country, according to its website.
The deal with Vion will see Tönnies buy beef sites in Buchloe, Crailsheim and Waldkraiburg in southern Germany. It also plans to take on a deboning facility in Hilden and two hide-processing units in Memmingen and Eching-Weixerau. The transaction also includes “the majority of Vion’s German central support activities”, the Dutch group said.
Just Food has approached Tönnies for comment.
Last month, Vion sold its stake in two sites in Germany to fellow meat business Erzeugergemeinschaft Südbayern.
In January, the company closed one site in Germany and struck a deal to sell three others in the country.
August also saw Vion reveal around 165 jobs will be affected in the Netherlands as it continues to streamline its business.
The Boxtel-headquartered company said in a statement there will be around 40 “compulsory redundancies”. It said “changing market conditions require adjustments to the size of the organisation”.
