ATLANTA / US, 2 July 2025: AGCO Corporation, the global agricultural equipment maker, announced on Tuesday that it has reached a comprehensive settlement with India-based Tractors and Farm Equipment Limited (TAFE), resolving long-standing disputes over commercial agreements, shareholding, brand rights, and governance structures.
As part of the new framework, AGCO and TAFE have agreed to terminate all existing commercial agreements between them, subject to defined wind-down provisions. Significantly, TAFE will gain exclusive ownership of the “Massey Ferguson” brand in India, Nepal, and Bhutan.
In addition, the parties agreed to terminate all pending legal proceedings.
The agreement also reshapes the companies’ shareholding and governance relationship. TAFE, which currently holds a 16.3% stake in AGCO, has committed to participating in future AGCO share repurchase programs while maintaining—but not exceeding—its current ownership. TAFE has also accepted customary voting provisions aligned with AGCO Board recommendations, subject to narrow exceptions, and has agreed to avoid public activism or negative commentary.
Under the settlement, TAFE will no longer have the right to nominate a director to the AGCO Board, and AGCO’s director on the TAFE Board will resign. Additionally, TAFE will repurchase AGCO’s current stake in its own company for $260 million, pending completion of relevant processes in India.
Eric Hansotia, AGCO’s Chairman, President, and CEO, welcomed the development. “We are pleased to have reached an amicable resolution with TAFE on all outstanding commercial, governance, and shareholding matters,” he said. “AGCO’s Board and management team remain fully focused on our Farmer-First strategy, improving farmer outcomes, driving operational success, and delivering shareholder value.”
AGCO confirmed that the agreements will be filed with the U.S. Securities and Exchange Commission.
