Latest news with #MasseyFerguson
Yahoo
6 days ago
- Business
- Yahoo
Long-standing tractor makers Agco and TAFE settle their disputes
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Dive Brief: Farm equipment makers Agco Corp. and India-based Tractors and Farm Equipment Ltd. have settled their simmering legal and commercial disputes related to the usage rights of global brand Massey Ferguson over the past nine months. For more than 60 years, TAFE has been a licensee of Massey Ferguson and sells the branded equipment across three South Asia countries. Moving forward, the company will now take ownership of the tractor brand exclusively for business in India, Nepal and Bhutan, according to a news release. As part of the resolution, Agco and TAFE said they will terminate all commercial agreements and withdraw all ongoing legal proceedings between them. They have also agreed for TAFE to buy back Agco's remaining equity in TAFE — valued at $260 million — prior to Nov. 28. Dive Insight: Established in 1960, TAFE is one of the largest tractor manufacturers in the world, selling over 180,000 units per year with a global reach that spans more than 80 countries, according to its news release. It is also Agco's largest shareholder, holding a 16.3% stake in the Duluth, Georgia-based company, which has sparked friction when disagreements arise. In April 2024, Agco terminated some commercial agreements with TAFE, citing 'poor operational performance as a supplier, brand licensee and distributor.' In response, TAFE sued Agco and pushed for board changes, expressing concerns with the company's decision-making and direction as tractor makers navigated a down market. The back-and-forth eventually led to Agco terminating its license and distributor agreements with TAFE for the Massey Ferguson brand in key South Asia markets, sparking more legal issues and friction between the companies. They have since come to a resolution that allows TAFE to have ownership of Massey Ferguson across the three countries, rather than regularly renewing licensing contracts, while retaining its majority stake in Agco. Agco acquired Massey Ferguson in 1994 and maintains global ownership of the brand in all other countries. The companies have also agreed to 'mutual non-disparagement' and for TAFE to refrain from engaging in public activism moving forward. Additionally, TAFE can no longer nominate a representative to serve on Agco's board of directors, and Agco's director on TAFE's board will step down. '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 July 1. In addition to the company's dispute resolution, Agco's board of directors authorized to launch a new share repurchase program of up to $1 billion in company stock. Recommended Reading Agco to lay off 6% of workforce, citing 'weakening demand' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
03-07-2025
- Business
- Time of India
Tafe, AGCO end dispute over tractor brand
Indian tractor maker Tafe and US-based agri-machinery company AGCO have reached a "comprehensive settlement and resolution" after months of disagreement over brand rights, among other issues, which had led to legal proceedings. The agreement, which resolves all disputes between Chennai-based Tractors and Farm Equipment (Tafe) and AGCO, will make Tafe the exclusive owner of Massey Ferguson brand for India, Nepal and Bhutan. Under the settlement, Tafe will buy back Agco's 20.7% stake in the company for $260 million. This will make Tafe a wholly owned subsidiary of the Amalgamations group. 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 programmes. Tafe will remain a long-term investor in AGCO through periodic interactions with AGCO leadership, said a Tafe statement. All commercial agreements between Tafe and AGCO will be mutually terminated. However, Tafe will honour outstanding supply orders and continue to supply parts for all markets on agreed terms, the statement said. It will also mean that all ongoing legal proceedings will be 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," said the Tafe statement. The agreements will become effective following 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 recognize and cherish the long partnership we've had with Agco and continue to support Agco as an engaged shareholder," said Mallika Srinivasan, CMD of Tafe. Tafe and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years," she added. In Sept 2024, AGCO Corporation terminated multiple agreements with TAFE, including the Massey Ferguson brand license agreement, a distributor agreement for India, Nepal, and Bhutan.
Time of India
02-07-2025
- Business
- Time of India
TAFE & AGCO Settle Legal Dispute over Massey Ferguson Brand in India
HighlightsChennai-based Tractors and Farm Equipment Limited has become the sole and exclusive owner of the Massey Ferguson brand in India, Nepal, and Bhutan following a settlement with AGCO Corporation. TAFE will repurchase AGCO's 20.7% stake in the company for $260 million, making it a wholly owned subsidiary of the Amalgamations Group. All existing commercial agreements between TAFE and AGCO will be terminated, but TAFE will continue to honor outstanding supply orders and provide parts for agreed markets. Chennai-based Tractors and Farm Equipment ( TAFE ) and US agricultural machinery manufacturer AGCO Corporation , which were locked in a legal dispute over the use of the latter's tractor brand Massey Ferguson in India, have reached a settlement. The deal brings the curtains down on the year-long legal dispute. Under the terms of the settlement, TAFE will become the sole and exclusive owner of the Massey Ferguson brand in India, Nepal and Bhutan, including all associated rights, trademarks and goodwill, according to a joint statement released on Tuesday. TAFE will repurchase AGCO's 20.7% stake in the company for $260 million, making it a wholly owned subsidiary of the Amalgamations Group, a Chennai-based diversified industrial conglomerate. AGCO, in turn, will exit its equity holding in TAFE. TAFE will retain a 16.3% ownership stake in AGCO and has committed not to exceed this limit. It will also participate in AGCO's future share buybacks to maintain its proportional holding, subject to certain exceptions. Additionally, TAFE will support AGCO's board recommendations at shareholder meetings, with limited exemptions. All existing commercial agreements between the two will be terminated. However, TAFE will continue to honour outstanding supply orders and provide parts for agreed markets. All legal proceedings will be unconditionally withdrawn. A consent decree will be sought to formally close the cases. The agreement will take effect upon completion of necessary regulatory and procedural formalities. According to legal sources, Sudarshan Venu of TVS Motor, and Haigreve Khaitan, senior partner at Khaitan & Co, played a key role in the outcome. The relationship between TAFE and AGCO spans over six decades. During this time, Massey Ferguson has become a well-recognised name in Indian agriculture. TAFE, the second-largest tractor manufacturer in India after Mahindra & Mahindra, sells more than 180,000 tractors annually, including over 100,000 Massey Ferguson tractors produced in India. 'We are pleased to have reached an amicable resolution with TAFE on all outstanding commercial, governance, and shareholding matters,' said Eric Hansotia, chairman and CEO, AGCO.
The Print
02-07-2025
- Business
- The Print
TAFE, AGCO settle feud over Massey Ferguson brand outside court
Under the settlement, ownership of the Massey Ferguson brand will rest with TAFE as the sole and exclusive owner for India, Nepal and Bhutan. TAFE said it will hold all rights, title and interest in 'Massey Ferguson' and related trademarks and all goodwill associated therewith. In separate statements, the two companies said they have settled all matters relating to the Massey Ferguson brand, commercial issues and shareholding, thus ending their corporate feud. New Delhi, Jul 1 (PTI) Tractors and Farm Equipment Ltd (TAFE) and AGCO Corporation on Tuesday announced a comprehensive out-of-court settlement of all outstanding disputes, with the Indian firm agreeing to buy out the US-based firm's shareholding in it for USD 260 million (nearly Rs 2,225 crore). Besides, TAFE will buy back AGCO's shares in itself, which amounts to 20.7 per cent of the domestic tractor maker's equity, for a consideration of USD 260 million, making TAFE a wholly-owned subsidiary of the Amalgamations Group, a diversified industrial conglomerate, headquartered in Chennai, it added. TAFE will also retain its shareholding in AGCO at an ownership level of 16.3 per cent and not exceed it, while participating in AGCO's future buyback programs to maintain its proportionate ownership subject to certain exceptions, it stated. As part of the settlement, TAFE will support AGCO by voting its shares in favour of all the recommendations of AGCO's Board of Directors at shareholder meetings, subject to certain exemptions, the Chennai-based firm said. Besides, TAFE will remain a long-term investor in AGCO, it added. While all commercial agreements between TAFE and AGCO will be mutually terminated, TAFE will honour outstanding supply orders and continue to supply parts for all markets on agreed terms, it stated. AGCO, in its statement, said, 'Parties have agreed to mutual non-disparagement and TAFE not engaging in public activism. TAFE will no longer be entitled to nominate a representative to the AGCO Board of Directors and AGCO's Director on TAFE's Board will step down.' The two companies said their 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. 'As we step into a new era in TAFE's growth story, we recognise and cherish the long partnership we've had with AGCO, and continue to support AGCO as an engaged shareholder,' TAFE Chairman & Managing Director Mallika Srinivasan said. Stating that TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years, she said, 'We re-dedicate our commitment to transformation of Indian agriculture through our innovative products, solutions and service to the farming community in India.' AGCO Chairman, President and CEO Eric Hansotia welcomed the reaching of an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters. '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,' Hansotia said. AGCO said it will file the agreements with the US Securities and Exchange Commission. Last year in September, AGCO Corporation terminated multiple agreements with TAFE, including the Massey Ferguson brand license agreement, a distributor agreement for India, Nepal, and Bhutan. Subsequently, a legal battle followed with TAFE taking the matter to the Madras High Court. PTI MSS RKL MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Indian Express
01-07-2025
- Business
- Indian Express
Tafe settles with AGCO, will own brand Massey Ferguson
Tractors and Farm Equipment Ltd (TAFE), one of the world's largest manufacturers of tractors and farm equipment, has reached a comprehensive settlement and resolution with US-based AGCO Corporation on all matters relating to brand, commercial issues and shareholding. 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 thereby making TAFE a wholly-owned subsidiary of the Amalgamations Group, a diversified industrial conglomerate, headquartered in Chennai. TAFE will retain its shareholding in AGCO at an ownership level of 16.3 per cent, and not exceed it, while participating in AGCO's future buyback programmes to maintain its proportionate ownership subject to certain exceptions, TAFE said in a statement. As part of the settlement, 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, TAFE said. 'TAFE will support AGCO by voting of its shares in favour of all the recommendations of AGCO's Board of Directors at shareholder meetings, subject to certain exemptions,' TAFE said. TAFE will remain a long-term investor in AGCO through planned periodic interactions with AGCO leadership. 'While all commercial agreements between TAFE and AGCO will be mutually terminated, TAFE will honour outstanding supply orders and continue to supply parts for all markets on agreed terms,' it said. '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 said. 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. 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.' '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,' she said.
