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News18
04-08-2025
- Business
- News18
AGCO CEO Highlights Settlement With TAFE On Commercial, Governance, Shareholding Matters
Last Updated: Mallika Srinivasan, Chairman and Managing Director, TAFE, too, acknowledged the efforts of all involved in the "amicable settlement". The US-based agriculture machinery giant AGCO had finalised an agreement with TAFE, under which AGCO will exit its 20.7 per cent shareholding in TAFE for a consideration of $260 million. AGCO Corporation Chairman and CEO Eric P Hansotia has said the company has announced the resolution with TAFE on all outstanding commercial, governance and shareholding matters. Speaking during AGCO's Q2 2024 earnings call on July 31, Hansotia confirmed that the US-based agriculture machinery giant will exit its 20.7% shareholding in TAFE for a consideration of $260 million. The move makes TAFE a fully owned subsidiary of the Chennai-based Amalgamations Group, a diversified industrial conglomerate. 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. 'Turning to a couple AGCO-specific items. We recently announced the resolution with TAFE on all outstanding commercial, governance, and shareholding matters… This agreement paves the way for a more shareholder-friendly capital allocation strategy, including the new $1 billion share repurchase program that Damon will discuss shortly," said the CEO during earnings call on July 31, 2025. 'We appreciate the TAFE relationship for its years as a commercial partner and continued support as a shareholder. AGCO's Board and management team are fully focused on our Farmer-First strategy, which we believe will improve outcomes for farmers, drive operational success for our company and deliver strong returns for shareholders," he said at that time. Mallika Srinivasan, Chairman and Managing Director, TAFE, acknowledged the efforts of all involved. In a statement, she thanked all TAFE teams, lawyers and stakeholders for their 'efforts and support in achieving an amicable settlement and comprehensive resolution of all legal disputes pertaining to the AGCO matter". Meanwhile, AGCO reported net sales of $2.6 billion for the second quarter ending June 30, 2025, a decrease of 18.8% compared to the second quarter of 2024. The second quarter of 2024 included other revenues of $290.5 million, which represent revenue from the company's divestiture of the majority of its Grain & Protein business as shown in the regional net sales table. Reported net income was $4.22 per share for the quarter and adjusted net income (1) was $1.35 per share. These results compare to reported net loss of $(4.92) per share and adjusted net income (1) of $2.53 per share for the second quarter of 2024. Excluding favorable foreign currency translation of 3.5%, net sales in the quarter decreased 22.3% compared to the second quarter of 2024. 'AGCO achieved solid second-quarter results with deliberate execution in the areas we can control despite a challenging global agricultural environment marked by weak farm economics and delayed purchasing decisions in several parts of the world," Hansotia informed investors in a statement on July 31. 'Our strong earnings and cash flow generation illustrate meaningful progress in reducing dealer and company inventories through aggressive production cuts. Operating margins benefited from disciplined cost control and continued implementation of our restructuring initiatives. Demand for our premium brands remains resilient, supported by growing interest in precision agriculture and sustainable technologies." view comments Location : New Delhi, India, India First Published: August 04, 2025, 15:03 IST News business AGCO CEO Highlights Settlement With TAFE On Commercial, Governance, Shareholding Matters Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
04-08-2025
- Business
- News18
'AGCO, TAFE Reach Settlement After Close Collaboration With Sudarshan Venu': AGCO CEO
Last Updated: 'This outcome was made possible with close collaboration with Sudarshan Venu, son of TAFE's chairman and MD,' says AGCO CEO Eric P Hansotia during Q2 2025 earnings call. AGCO Corporation Chairman and CEO Eric P Hansotia has acknowledged the key role played by TVS Motor Company Chairman Sudarshan Venu in reaching a comprehensive resolution with Chennai-based tractor manufacturer TAFE (Tractors and Farm Equipment Limited), bringing an end to a long-running dispute over shareholding and brand rights. Speaking during AGCO's Q2 2024 earnings call, Hansotia confirmed that the US-based agriculture machinery giant had finalised an agreement with TAFE, under which AGCO will exit its 20.7 per cent shareholding in TAFE for a consideration of $260 million. The move makes TAFE a fully owned subsidiary of the Chennai-based Amalgamations Group, a diversified industrial conglomerate. 'Turning to a couple of AGCO-specific items, we recently announced the resolution with TAFE on all outstanding commercial, governance and shareholding matters. This outcome was made possible with close collaboration with Sudarshan Venu, son of TAFE's chairman and managing director," Hansotia said during the Q2 2025 earnings call on July 31, 2025. The company follows January-December fiscal year. The agreement also grants TAFE sole and exclusive ownership of the Massey Ferguson brand in India, Nepal, and Bhutan. As per a statement released by TAFE in July, the settlement includes full rights, title, and interest in the Massey Ferguson brand and associated trademarks, along with all goodwill linked to them. This marks the end of a long-standing partnership between the two agricultural equipment giants, which had begun to show signs of strain in late 2024. The dispute came to a head in September when AGCO announced it was terminating its agreements with TAFE, including the licensing of the Massey Ferguson brand. TAFE responded by filing a contempt petition, alleging that AGCO's actions violated earlier court directives and were executed without proper legal notice. The resolution now paves the way for both companies to pursue independent strategies in the Indian subcontinent, one of the world's largest tractor markets. For TAFE, the settlement secures full control over one of its flagship brands in key geographies and allows it to move forward with brand and product development without external restrictions. For AGCO, the divestment aligns with its global portfolio strategy and eliminates governance complexities stemming from minority shareholding in a former joint venture. The agreement is also being viewed as a reflection of Sudarshan Venu's growing influence in resolving high-stakes corporate matters. While he currently leads TVS Motor, a separate entity from TAFE, his involvement in the settlement underscores the close familial and corporate ties within the broader business group and highlights his role in facilitating constructive dialogue between the parties. With the dispute now resolved, both companies are expected to focus on growth and innovation in a rapidly evolving global agri-machinery market. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
