AGCO completes sale of stake in Tafe for US$260 million

AGCO Corporation announced on Tuesday, September 30, the completion of the sale of its stake in Tractors and Farm Equipment Limited (Tafe). The transaction value reached US$260 million. After taxes, the U.S. company reported that it will receive approximately US$230 million.

The deal concludes a process that began in July, when the two companies signed agreements that resolved commercial and governance disputes. The terms included the termination of all commercial contracts between AGCO and Tafe, with transition clauses. It was agreed that Tafe will have exclusive ownership of the Massey Ferguson brand in India, Nepal, and Bhutan. Furthermore, all ongoing legal proceedings were dismissed.

Tafe also committed to participating in future AGCO share buyback programs, maintaining its stake at 16,3%. It was also agreed that the Indian company will no longer have the right to appoint a representative to AGCO's board of directors, while AGCO's seat on Tafe's board was discontinued.

According to AGCO, the agreements include non-disparagement clauses and limit Tafe's involvement in corporate activism issues. AGCO CEO Eric Hansotia emphasized that the resolution allows full focus on the "Farmer-First" strategy, which focuses on results for farmers, operational efficiency, and shareholder returns.