Chennai-based Tractors and Farm Equipment Limited struck a $260 million deal with AGCO Corporation on Tuesday, ending years of legal battles while securing exclusive rights to the Massey Ferguson brand across India, Nepal, and Bhutan.
The comprehensive settlement resolves all disputes between the Indian tractor manufacturer and the U.S. agricultural equipment giant, including brand ownership, commercial agreements, and shareholding arrangements that had dragged both companies through multiple court proceedings.
Under the agreement, TAFE will repurchase AGCO's 20.7% equity stake for $260 million, making the Indian company a wholly owned subsidiary of the Amalgamations Group12. The deal effectively unwinds a partnership that began in 1960 when TAFE first entered into a joint venture with Massey Ferguson3.
TAFE will retain its 16.3% ownership in AGCO while agreeing not to exceed that threshold4. The Indian company has also committed to supporting AGCO's board recommendations at shareholder meetings, with limited exceptions, and will no longer nominate directors to AGCO's board5.
"We are pleased to have reached an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters," said Eric Hansotia, AGCO's Chairman, President and CEO6.
The settlement grants TAFE "sole and exclusive" ownership of the Massey Ferguson brand in its key markets, including "all rights, title and interest" in related trademarks and goodwill1. This brand control solidifies TAFE's position in India, where it holds approximately 25% of the tractor market and sells over 180,000 tractors annually2.
All existing commercial agreements between the companies will terminate, though TAFE will honor outstanding supply orders and continue providing parts for agreed markets3. The settlement also ends all legal proceedings, including three cases pending before the Madras High Court4.
The dispute stemmed from disagreements over brand ownership and commercial arrangements that had persisted for months1. The Madras High Court had maintained the status quo in February 2025, allowing TAFE's interim use of the Massey Ferguson brand until ownership was resolved2.
TAFE, founded in 1960, ranks as one of the world's largest tractor manufacturers and India's second-largest by volume3. The company generates annual revenue exceeding $1.6 billion and operates manufacturing facilities across multiple countries4.
The agreements require completion of certain governmental processes in India before becoming effective5.
