AGCO Faces Lawsuit from Indian Tractor Manufacturer

AGCO has terminated its commercial relationships with Indian tractor manufacturer Tractors and Farm Equipment Limited (TAFE), according to a May 1 SEC filing. AGCO said it purchased approximately $171.6 million of tractors and components from TAFE in 2023 and sold approximately $3.6 million of parts to TAFE.

AGCO currently owns 21% of outstanding shares of TAFE, while TAFE and its affiliates own approximately 16% of outstanding AGCO shares. These ownerships will not be impacted by the termination.

TAFE announced May 2 it had obtained a status quo order from an Indian court against AGCO to “protect against unilateral and arbitrary action by AGCO with respect to the longstanding agreement and rights to the Massey Ferguson (MF) brand.”

Source: AgEquipmentIntelligence.com