Chennai, July 1, 2025 — Tractor and Farm Equipment Limited (TAFE), one of the world’s biggest producers of tractors and agricultural equipment, has introduced a landmark settlement with international agricultural device foremost AGCO. The agreement resolves all first rate subjects among the two companies, including the ones associated with emblem possession, shareholding, and commercial relationships.
As part of the comprehensive decision, TAFE turns into the only and different owner of the “Massey Ferguson” brand in India, Nepal, and Bhutan, securing all associated rights, emblems, and goodwill. The pass similarly strengthens TAFE’s leadership and emblem fairness inside the South Asian agricultural equipment market..
In a prime structural development, TAFE will purchase again AGCO’s 20.7% equity stake for $260 million, making it an entirely-owned subsidiary of the Chennai-based Amalgamations Group.
TAFE will, however, keep its 16.3% shareholding in AGCO and has agreed no longer to exceed that stage. The organization will keep taking part in AGCO’s future buyback programs to maintain its ownership proportion, concern to particular exceptions.
As a part of the settlement, TAFE will support AGCO with the aid of balloting in desire of the AGCO Board’s tips at shareholder conferences, again with certain exemptions. TAFE additionally reaffirmed its role as an extended-time period investor in AGCO, with plans for endured periodic engagement with AGCO management.
All current industrial agreements between the 2 groups can be collectively terminated. However, TAFE has committed to fulfilling exquisite supply orders and continuing elements deliver under agreed phrases for international markets.
The agreement is subject to the completion of required regulatory and procedural approvals in India concerning AGCO’s share repurchase by TAFE.
Mallika Srinivasan, Chairman & Managing Director of TAFE, expressed optimism about the new chapter in the company’s journey.
“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.
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 transforming Indian agriculture through innovation, solutions, and service to the farming community.”
The settlement marks a significant strategic milestone for TAFE as it reinforces its independence while maintaining a key global partnership with AGCO.
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