Brussels approved the deal without conditions, using its fast-track competition approval procedures. Both companies produce, process and supply meat products and the new joint venture – called Proteinunion – will be based in Germany.
A Commission communiqué noted: “The new joint venture will process, utilise and dispose of cattle slaughterhouse by-products that are unsuitable for food production.”
OSI’s German subsidiary OSI Europe Foodworks (Germany) will manage the OST half of the business, while on the Tönnies side, the controlling subsidiary will be FlRoWa Handels (Germany). Both these companies will buy shares in the new joint venture.
Tönnies focuses on the slaughtering, butchering and processing of pigs, sows and beef cattle and is a German market leader in ready-to-sell, pre-packed fresh meat, selling boiled ham, cured pork products, and sausages. US-based OSI has a global scope and also sells processed meat products, including bacon, bacon bits, cooked beef and pork, meatloaf slices and patties, prime rib and more.