Tractors and Farm Equipment Limited (“TAFE”), one of the world’s largest manufacturers of tractors and farm equipment, announced today that a comprehensive settlement and resolution has been reached with AGCO Corporation (NYSE: AGCO) (“AGCO”) on all matters relating to brand, commercial issues and shareholding.

The settlement encompasses the following key features:

• Ownership of Massey Ferguson brand will rest with TAFE as the sole and exclusive owner for India, Nepal and Bhutan including all rights, title and interest in “Massey Ferguson” and related trademarks and all goodwill associated therewith.
• TAFE will buy back AGCO’s shares in TAFE which amounts to 20.7% of TAFE’s equity for a consideration of $260 million thereby making TAFE a wholly owned subsidiary of the Amalgamations Group, a diversified industrial conglomerate, headquartered in Chennai, India.
• TAFE will retain its shareholding in AGCO at an ownership level of 16.3%, and not exceed it, while participating in AGCO’s future buyback programs to maintain its proportionate ownership subject to certain exceptions.
• TAFE will support AGCO by voting of its shares in favor of all the recommendations of AGCO’s Board of Directors at shareholder meetings, subject to certain exemptions.
• TAFE will remain a long-term investor in AGCO through planned periodic interactions with AGCO leadership.
• While all commercial agreements between TAFE and AGCO will be mutually terminated; TAFE will honour outstanding supply orders and continue to supply parts for all markets on agreed terms.
• All ongoing legal proceedings will be irrevocably and unconditionally withdrawn. A consent decree will be sought in the three suits relating to Massey Ferguson brand-currently pending before the Madras High Court in India.

The agreements will become effective upon the completion by AGCO and TAFE of certain governmental and other processes in India relating to the repurchase of the shares held by AGCO in TAFE.

Mallika Srinivasan, Chairman & Managing Director - TAFE, said, “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 added that, “TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years. We re-dedicate our commitment to transformation of Indian agriculture through our innovative products, solutions and service to the farming community in India. As we move towards our vision of ‘Cultivating the World’, we are confident of delivering exceptional value to all our stakeholders.”

About TAFE:

TAFE - Tractors and Farm Equipment Limited, an Indian tractor major incorporated in 1960 in Chennai, India. As one of the largest tractor manufacturers in the world and the second-largest in India by volume, TAFE sells over 180,000 tractors annually. TAFE has earned the trust of customers through its range of products, which are widely acclaimed for their quality and low cost of operation. A strong distribution network of over 1,600 dealers effectively supports TAFE’s four iconic tractor brands - Massey Ferguson India, TAFE, Eicher Tractors, and IMT. TAFE exports tractors to more than 80 countries, powering farms in Asia, Africa, Europe, the Americas, and Russia.

In 2005, TAFE acquired the Tractors, Engines and Transmissions business of the legendary Eicher brand with German roots, through a wholly owned subsidiary - TAFE Motors and Tractors Limited (TMTL). Beyond tractors, TAFE and its subsidiaries have diversified business interests in areas such as farm machinery, diesel engines and gensets, agro-industrial engines, engineering plastics, gears and transmission components, hydraulic pumps and cylinders, vehicle franchises, and plantations.

TAFE acquired the iconic Serbian tractor and agricultural equipment brand IMT - Industrija Mašina i Traktora in 2018. Furthermore, TAFE acquired FAURECIA's Indian interior business of Group FORVIA - the French global automotive supplier, in 2022.

TAFE is committed to Total Quality Management (TQM). In recent years, various manufacturing plants of TAFE have garnered numerous ‘TPM Excellence’ awards from the Japan Institute of Plant Maintenance (JIPM), along with several regional awards for TPM excellence. In 2023, TAFE won the ‘Launch of the Year’ award for its Eicher PRIMA G3 range of tractors, in addition to three other prestigious awards, including ‘Best CSR Initiative’ for JFarm Services, at the 4th edition of the Indian Tractor of the Year (ITOTY) Awards 2023, and the Top Exporter Award from the Commissioner of Customs.

In 2018, TAFE became the first Indian tractor manufacturer to win the Frost & Sullivan Global Manufacturing Leadership Award, being recognized with the ‘Enterprise Integration and Technology Leadership’ award, as well as two ‘Supply Chain Leadership’ awards. In recognition of its outstanding contribution to engineering exports, TAFE has been named the ‘Star Performer - Large Enterprise (Agricultural Tractors)’ by the Engineering Exports Promotion Council of India - Southern Region for the 23rd consecutive time.

TAFE has earned the trust of customers through its range of products that are widely acclaimed for superior quality and low cost of operation. TAFE's social focus has been significant since inception and it contributes towards meaningful causes of agriculture, education, healthcare, community development, disaster relief, conservation and tribal welfare besides supporting traditional art forms.

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