Tractors and Farm Equipment Limited (TAFE) has announced a comprehensive settlement with US-based AGCO Corporation, covering brand rights, equity shareholding, and commercial arrangements.
As part of the agreement, TAFE will acquire AGCO’s 20.7% stake in the company for $260 million (approximately Rs 2,165 crore), making TAFE a wholly owned subsidiary of the Chennai-based Amalgamations Group. Following this transaction, TAFE will gain sole and exclusive ownership of the Massey Ferguson brand across India, Nepal, and Bhutan, including all related trademarks and goodwill.
TAFE will continue to retain its 16.3% equity stake in AGCO and has agreed not to exceed this level. The company will also participate in AGCO’s future share buyback programs to maintain its proportional ownership, subject to specified conditions.
Additionally, all existing commercial agreements between TAFE and AGCO will be terminated. However, TAFE will fulfill pending supply orders and continue parts support under agreed terms. Both companies have agreed to withdraw all ongoing legal proceedings, including those before the Madras High Court concerning the Massey Ferguson brand.
The agreement will take effect following necessary regulatory and procedural approvals in India.
TAFE Chairman and Managing Director Mallika Srinivasan expressed gratitude for the long-standing partnership with AGCO and reiterated the company’s commitment to Indian agriculture and its dealer and customer base.
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