Bengaluru: Tractors and Farm Equipment Ltd (TAFE) and US-based AGCO Corp. have ended their 15-month-long dispute with a comprehensive settlement announced on Tuesday.Under the agreement, the Chennai-based tractor maker will pay $260 million to buy back AGCO’s 20.7% stake in the company, while retaining exclusive rights to the Massey Ferguson brand in India, Nepal and Bhutan.TAFE, which also owns 16.3% of AGCO, has agreed to cap its shareholding at the current level and participate in future buyback programmes to maintain its proportionate ownership, subject to certain exceptions. Both companies have also agreed to withdraw all ongoing litigation and terminate their commercial agreements, TAFE said in a statement.The two firms will no longer have board representation in each other’s companies.“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,” said Mallika Srinivasan, chairperson and managing director of TAFE.The dispute dates back to April 2024, when AGCO terminated a key business agreement with TAFE, triggering a legal battle over the use of the Massey Ferguson brand. TAFE, which had long held a licence to manufacture and sell the brand in India, challenged the termination in court and secured interim relief from the Madras High Court.Court filings and executive statements now reveal that AGCO’s discomfort with TAFE’s growing stake—making it the US firm’s largest shareholder—was a key trigger. In its submission to a Chennai court on 8 August 2024, TAFE alleged that AGCO’s actions were aimed at forcing a standstill agreement and diluting its influence.The friction extended beyond shareholding. TAFE had also pushed for governance reforms at AGCO, including a proposal to split the roles of chairman and chief executive officer—both held by Eric Hansotia. The suggestion, made in early 2022, failed to gain traction. In April this year, 15 of AGCO’s 20 largest public shareholders voted to reappoint Hansotia, with only Norway’s Norges Bank Investment Management dissenting, citing concerns over board independence.TAFE’s concerns were also detailed in a letter to AGCO shareholders dated 30 September 2024, in which the Indian firm criticized AGCO’s strategic direction, citing missed market opportunities, failed acquisitions and rising costs. The letter accused AGCO’s board of isolating TAFE’s representative and failing to engage constructively with its largest shareholder.The settlement announced on Tuesday brings the standoff to a close. TAFE will repurchase AGCO’s 20.7% stake, making it a wholly-owned subsidiary of the Amalgamations Group.In return, TAFE will retain exclusive rights to the Massey Ferguson brand in India, Nepal and Bhutan. All legal proceedings will be irrevocably withdrawn, and a consent decree will be filed in the pending suits before the Madras High Court.The agreement also i in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. 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TAFE has repurchased its stake in AGCO for $260 million, resolving a dispute that lasted 15 months.
