TAFE settles AGCO dispute, retains Massey brand rights

The dispute dates back to April 2024, when AGCO terminated a key business agreement with TAFE

- Vaeshnavi Kasthuril

Tractors and Farm Equipment Ltd (TAFE) and US-based AGCO Corp. have ended their 15-month-long dispute with a comprehensive settlement announced on Tuesday.

Under the agreement, the Chennai-based tractor maker will pay $260 million to buy back AGCO's 20.7% stake in the company, while retaining exclusive rights to the Massey Ferguson brand in India, Nepal and Bhutan.

TAFE, which also owns 16.3% of AGCO, has agreed to cap its shareholding at the current level and participate in future buyback programmes to maintain its proportionate ownership, subject to certain exceptions. Both companies have also agreed to withdraw all ongoing litigation, TAFE said in a statement.

The two firms will no longer have board representation in each other's companies.

"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," said Mallika Srinivasan, chairperson and managing director of TAFE.