The long running dispute between Agco and India’s Tafe (Tractors and Farm Equipment) is over. The two companies have reached a series of agreements.
Terminating all outstanding disputes between the two parties, including issues surrounding the use of the Massey Ferguson brand, reciprocal shareholding rights and governance issues, this latest agreement gives Tafe exclusive ownership of the Massey Ferguson brand in India, Nepal and Bhutan. All existing commercial agreements and legal proceedings between the two companies will be terminated.
Agco will sell its stake in Tafe back to the Indian company for US$260 million. Tafe remains a shareholder in Agco but has promised not to increase its 16.3 percent share.
“We are pleased to have reached an amicable resolution with Tafe on all outstanding commercial, governance and shareholding matters,” said Agco boss Eric Hansotia. “We appreciate the Tafe relationship for its years as a commercial partner and continued support as a shareholder.”
The agreement will be submitted to the American stock market watchdog SEC.
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