NeUS agricultural equipment maker AGCO Corporation on Monday said it has terminated multiple agreements with Indian tractor manufacturer Tractors and Farm Equipment Ltd. with immediate effect.
The terminations include the Massey Ferguson brand license agreement, a distributor agreement for India, Nepal, and Bhutan, and an intellectual property license agreement for India, Nepal, Sri Lanka, Bangladesh, and Bhutan, it added.
AGCO, in a statement, cited 'inappropriate and unauthorised actions' by TAFE that allegedly breached various agreements as the reason for the terminations.
The US-based company has also initiated legal proceedings against TAFE in India regarding the use of the Massey Ferguson brand following these terminations.
As a result, TAFE is no longer authorised to use, distribute, or sell AGCO's Massey Ferguson brand or products in the affected markets.
This move is separate from the at-will termination notices AGCO served on TAFE in April 2024 for certain commercial agreements.
Despite these actions, AGCO reaffirmed its commitment to the Indian market, stating, "India remains an important market for the future of agriculture, and AGCO is committed to partnering with farmers to grow the respected Massey Ferguson brand".
AGCO, founded in 1990, had net sales of approximately $14.4 billion in 2023.
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