Chennai-based Tractors and Farm Equipment Limited (TAFE), one of the world’s largest manufacturers of tractors and agricultural machinery, announced a landmark resolution with global farm equipment giant AGCO Corporation, culminating in a comprehensive settlement of all outstanding matters related to brand ownership, commercial agreements, and equity shareholding.
As part of the agreement, TAFE will become the sole and exclusive owner of the iconic Massey Ferguson brand for the territories of India, Nepal, and Bhutan. This includes full rights, title, interest, and associated goodwill in the Massey Ferguson and related trademarks for these markets, further strengthening TAFE’s brand leadership in the region.
This development follows a key decision by the Madras High Court in a February 5, 2025, hearing, where the court chose to maintain the status quo, thereby permitting TAFE’s interim use of the Massey Ferguson brand in India until the issue of brand ownership was fully resolved. The latest settlement brings finality to this matter.
A key component of the settlement involves TAFE buying back AGCO’s 20.7% equity stake in the company for a consideration of $260 million, thereby making TAFE a wholly owned subsidiary of the Amalgamations Group, a diversified industrial conglomerate headquartered in Chennai. With this move, the nearly two-decade-old equity partnership between TAFE and AGCO will come to a close, although both companies have affirmed their intent to maintain a constructive relationship going forward.
Despite the repurchase of shares, TAFE will retain its 16.3% shareholding in AGCO, with a commitment not to exceed this ownership level. It will continue to participate in AGCO’s share buyback programs as needed to maintain proportionate ownership, subject to specific exceptions. TAFE will also support AGCO by voting in favor of all board recommendations at shareholder meetings, again with limited exceptions, reaffirming its stance as a long-term investor.
While all commercial agreements between the two companies will be mutually terminated, TAFE has confirmed it will honor outstanding supply commitments and continue to supply parts to AGCO for various markets under pre-agreed terms. In a move toward complete resolution, all ongoing legal proceedings—including three suits concerning the Massey Ferguson brand currently pending before the Madras High Court—will be irrevocably and unconditionally withdrawn, with a consent decree to be sought to close these cases.
The execution of the agreement is subject to regulatory and governmental clearances in India, particularly concerning the share repurchase.
Commenting on the development, Mallika Srinivasan, Chairman and Managing Director of 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.” She added, “TAFE and Massey Ferguson have been synonymous in the minds of Indian customers for over 65 years. We re-dedicate our commitment to the transformation of Indian agriculture through innovative products, solutions, and services for the farming community. As we move towards our vision of ‘Cultivating the World’, we are confident of delivering exceptional value to all our stakeholders.”
This strategic move not only strengthens TAFE’s brand autonomy in key markets but also sets the stage for a more focused and independent growth trajectory in the global agricultural machinery landscape.
