TAFE and AGCO Corporation reach settlement on legal dispute and shareholding matters

Tractors and farm equipment major TAFE has reached a comprehensive settlement and resolution with US agriculture machinery firm AGCO on all matters that relate to the brand, commercial issues and shareholding.

As per a statement put out by TAFE, the settlement specifies that the ownership of Massey Ferguson brand will rest with TAFE as the sole and exclusive owner for India, Nepal and Bhutan including “all rights, title and interest in ‘Massey Ferguson’ and related trademarks and all goodwill associated therewith.”

As per the agreement, TAFE will buy back AGCO’s shares in TAFE which amounts to 20.7 per cent of TAFE’s equity for a consideration of $260 million. This move will make TAFE a wholly owned subsidiary of the Amalgamations Group, a diversified industrial conglomerate, headquartered in Chennai.

While all commercial agreements between TAFE and AGCO will be mutually terminated and TAFE will honour outstanding supply orders and continue to supply parts for all markets on agreed terms. “All ongoing legal proceedings will be irrevocably and unconditionally withdrawn. A consent decree will be sought in the three suits relating to Massey Ferguson brand-currently pending before the Madras High Court in India,” TAFE added.

Mallika Srinivasan, Chairman & Managing Director – TAFE, said, “As we step into a new era in TAFE’s growth story, we recognize and cherish the long partnership we’ve had with AGCO, and continue to support AGCO as an engaged shareholder.”

She added that, “TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years. We re-dedicate our commitment to transformation of Indian agriculture through our innovative products, solutions and service to the farming community in India. As we move towards our vision of ‘Cultivating the World’, we are confident of delivering exceptional value to all our stakeholders.”

“TAFE will retain its shareholding in AGCO at an ownership level of 16.3%, and not exceed it, while participating in AGCO’s future buyback programs to maintain its proportionate ownership subject to certain exceptions,” TAFE said.

It will also support AGCO by voting of its shares in favor of all the recommendations of AGCO’s Board of Directors at shareholder meetings, subject to certain exemptions. “TAFE will remain a long-term investor in AGCO through planned periodic interactions with AGCO leadership,” the company added.

The agreements will become effective upon the completion by AGCO and TAFE of certain governmental and other processes in India relating to the repurchase of the shares held by AGCO in TAFE.

“We are pleased to have reached an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters,” Eric Hansotia, AGCO’s Chairman, President and CEO, said in a statement. AGCO’s Board and management team are fully focused on our Farmer-First strategy, which we believe will improve outcomes for farmers, drive operational success for our company and deliver strong returns for shareholders, he added.

The dispute between TAFE and AGCO escalated in September 2024, when AGCO announced the termination of its agreements with TAFE, including the brand license for Massey Ferguson. In response to the termination, TAFE filed a contempt petition, claiming that AGCO’s action violated previous court orders and was carried out without proper notice.

More Like This

Published on July 1, 2025