AGCO announced its separation in commercial terms from TAFE, the Indian manufacturer with which it had a relationship of nearly 50 years.
The breakup was formalized with a presentation that AGCO made to the SEC of India (the Securities and Exchange Commission), announcing the end of business relations.
AGCO currently owns the twenty-one% of TAFE’s outstanding shares, while the Indian company and its affiliates own approximately 16% of AGCO’s outstanding shares.
These shareholdings will not be affected by the conclusion of the business ties.
Divorce
AGCO’s decision came after a conflict that began in November 2020.
At that time, TAFE filed a report with the SEC requesting that AGCO separate the positions of CEO and Chairman of the Board of Directors in the joint venture into India.
He argued that this change would serve “to better fulfill the Board’s duty to supervise the company”.
AGCO alleged that TAFE’s presentation contained “a series of misleading statements”.
Business
Until now, TAFE (Tractors and Farm Equipment Limited) had been producing Massey Ferguson tractors in India.
In addition, the two companies exchanged equipment and agricultural parts.
For example, in 2023, AGCO purchased approximately $171.6 million in tractors and components from TAFE and sold $3.6 million in parts to TAFE.
