The Premium Food Group, Germany’s largest sausage producer and parent company of the meat giant Tönnies, has announced plans to acquire a majority stake in The Family Butchers (TFB), the country’s second-largest sausage manufacturer. However, the proposed deal is expected to draw scrutiny from antitrust authorities.
Both companies confirmed the acquisition plans on Wednesday. TFB, which is currently facing significant financial difficulties, hopes the takeover will bring much-needed stability.
In a joint statement, TFB explained that the company is in “an extremely challenging economic situation” and that the acquisition would play a critical role in securing its future. Beyond ensuring the company’s survival, the move is also intended to safeguard long-term access to raw meat — a crucial step in an industry under increasing pressure.
The sausage market in Germany has faced numerous hurdles in recent years, from rising production costs to shifting consumer preferences and growing regulatory demands. These factors have made it increasingly difficult for mid-sized and smaller producers to remain competitive.
For Premium Food Group, the acquisition offers an opportunity to expand its market dominance and secure its supply chain by absorbing a direct competitor. TFB, which was previously formed through the merger of Reinert and Kemper, has struggled to maintain profitability amid market turbulence.
Industry observers suggest that while the merger could strengthen both companies’ market positions, it is likely to attract attention from Germany’s Federal Cartel Office. The regulatory body will closely examine whether the acquisition might reduce competition in an already consolidated sector.
A decision from the antitrust authority will be key to determining whether the deal moves forward. Until then, both parties appear committed to finalizing the agreement and stabilizing TFB’s operations as quickly as possible.
