Tractor giant TAFE has announced a comprehensive settlement with AGCO, resolving all outstanding issues related to brand ownership, commercial agreements, and equity holdings. As part of the agreement, TAFE will become the sole and exclusive owner of the “Massey Ferguson” brand in India, Nepal, and Bhutan.
TAFE will also buy back AGCO’s 20.7% equity in the company for $260 million, making it a wholly owned subsidiary of the Amalgamations Group. While TAFE exits AGCO’s shareholding structure, it will retain a 16.3% stake and support AGCO’s board decisions in shareholder meetings, subject to certain exemptions.
All existing legal proceedings between the two companies will be withdrawn, and current commercial agreements will be mutually terminated. However, TAFE has agreed to honor pending supply orders and parts commitments. In Kolkata, where TAFE’s Massey Ferguson brand enjoys robust market recognition among small and medium-scale farmers, dealers anticipate the move will boost confidence and drive new tractor sales. “This ownership clarity can enhance after-sales support and long-term service commitments,” a distributor remarked. Chairman & MD Mallika Srinivasan reaffirmed TAFE’s commitment to Indian agriculture, pledging to deliver greater value and innovation to farmers across the region.