TAFE and AGCO Reach Settlement on Brand Ownership, Shareholding, and Commercial Agreements

Tractors and Farm Equipment Limited (TAFE) has reached a comprehensive settlement with AGCO Corporation covering brand ownership, equity shareholding, and commercial arrangements. This agreement brings clarity to ongoing matters between the two companies.

As part of the settlement, TAFE will become the sole and exclusive owner of the Massey Ferguson brand across India, Nepal, and Bhutan. This includes all associated rights, trademarks, and related goodwill. In parallel, TAFE will buy back AGCO’s 20.7% equity stake in the company for a total of $260 million, making TAFE a wholly owned subsidiary of the Chennai-headquartered Amalgamations Group.

TAFE will continue to hold a 16.3% equity stake in AGCO and has agreed not to exceed this ownership level. It will participate in AGCO’s future share buyback programs to maintain its proportional stake, subject to certain conditions. TAFE has also agreed to support AGCO’s Board recommendations during shareholder meetings, with some exemptions.

All commercial agreements between TAFE and AGCO will be terminated. However, TAFE will fulfill existing supply orders and continue to provide parts across markets under agreed terms. Legal proceedings between the two companies, including those pending before the Madras High Court related to the Massey Ferguson brand, will be withdrawn.

The agreement will come into effect following regulatory and procedural clearances in India related to the share repurchase.

Mallika Srinivasan, Chairman and Managing Director of TAFE, acknowledged the long-standing partnership with AGCO and said TAFE would continue to remain an engaged shareholder. She added that TAFE remains focused on supporting Indian agriculture through its range of products and services.

"We are pleased to have reached an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters," said Eric Hansotia, AGCO's Chairman, President and CEO. "We appreciate the TAFE relationship for its years as a commercial partner and continued support as a shareholder. 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."

TAFE is among the world’s largest tractor manufacturers and India’s second-largest by volume. Headquartered in Chennai, TAFE markets its products under brands including Massey Ferguson, TAFE, Eicher, and IMT. It operates through a dealer network of over 1,600 outlets and exports to more than 80 countries. The company also has diversified business interests in farm machinery, diesel engines, engineering plastics, and related areas. TAFE has received several awards for manufacturing excellence, export performance, and social initiatives in agriculture, education, and community development.