TAFE and AGCO Reach Landmark Settlement on Brand Rights, Shareholding, and Commercial Agreements
Deal solidifies TAFE’s ownership of Massey Ferguson brand in key markets; AGCO exits stake in TAFE for $260 million
Bangalore, India – Tractors and Farm Equipment Limited (TAFE), one of the world’s largest tractor manufacturers, has reached a comprehensive settlement with AGCO Corporation, resolving all pending disputes over brand rights, commercial agreements, and shareholding. The agreement marks a significant milestone in the decades-long partnership between the two industry giants, paving the way for independent growth strategies while maintaining mutual cooperation in key areas.
TAFE Retains Exclusive Rights to Massey Ferguson Brand
Under the terms of the settlement, TAFE will become the sole and exclusive owner of the Massey Ferguson brand in India, Nepal, and Bhutan. The deal grants TAFE full rights, titles, and trademarks associated with the iconic agricultural machinery brand, along with all related goodwill.
Additionally, the companies have agreed to withdraw all ongoing legal proceedings, including three pending lawsuits before the Madras High Court in India concerning the Massey Ferguson brand. A consent decree will be sought to formalize the resolution. 
AGCO Exits Stake in TAFE for $260 Million
As part of the agreement, TAFE will repurchase AGCO’s 20.7% equity stake in the company for $260 million, making TAFE a wholly-owned subsidiary of the Chennai-based Amalgamations Group. Meanwhile, TAFE will retain its 16.3% stake in AGCO and participate in future buyback programs to maintain its proportional ownership, subject to certain conditions.
TAFE has also committed to supporting AGCO’s board recommendations in shareholder meetings, reinforcing its position as a long-term investor.
Commercial Agreements Terminated, Supply Commitments Honored
While all existing commercial agreements between TAFE and AGCO will be terminated, TAFE will fulfill outstanding supply orders and continue providing parts to AGCO for global markets under agreed terms.
Leadership Embraces New Chapter
Mallika Srinivasan, Chairman & Managing Director of TAFE, reflected on the settlement as a turning point for the company. “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 said.
The agreements will take effect upon completion of regulatory and governmental processes related to the share repurchase in India.
A Strategic Shift in the Farm Equipment Industry
The resolution ends years of negotiations and legal disputes, allowing both companies to focus on their respective market strategies. For TAFE, full ownership of the Massey Ferguson brand in South Asia strengthens its position in a key growth region, while AGCO’s divestment streamlines its global operations.
Industry analysts view the settlement as a win-win, eliminating uncertainties and fostering clearer paths for future growth. With the legal and commercial hurdles resolved, TAFE is poised to leverage its strengthened brand ownership, while AGCO retains a significant Indian investor in its shareholder base.
The settlement underscores the evolving dynamics of the global agricultural machinery sector, where regional brand control and strategic investments play an increasingly pivotal role.
