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The Print
3 days ago
- Business
- The Print
TAFE, AGCO settle feud over Massey Ferguson brand outside court
Under the settlement, ownership of the Massey Ferguson brand will rest with TAFE as the sole and exclusive owner for India, Nepal and Bhutan. TAFE said it will hold all rights, title and interest in 'Massey Ferguson' and related trademarks and all goodwill associated therewith. In separate statements, the two companies said they have settled all matters relating to the Massey Ferguson brand, commercial issues and shareholding, thus ending their corporate feud. New Delhi, Jul 1 (PTI) Tractors and Farm Equipment Ltd (TAFE) and AGCO Corporation on Tuesday announced a comprehensive out-of-court settlement of all outstanding disputes, with the Indian firm agreeing to buy out the US-based firm's shareholding in it for USD 260 million (nearly Rs 2,225 crore). Besides, TAFE will buy back AGCO's shares in itself, which amounts to 20.7 per cent of the domestic tractor maker's equity, for a consideration of USD 260 million, making TAFE a wholly-owned subsidiary of the Amalgamations Group, a diversified industrial conglomerate, headquartered in Chennai, it added. TAFE will also retain its shareholding in AGCO at an ownership level of 16.3 per cent and not exceed it, while participating in AGCO's future buyback programs to maintain its proportionate ownership subject to certain exceptions, it stated. As part of the settlement, TAFE will support AGCO by voting its shares in favour of all the recommendations of AGCO's Board of Directors at shareholder meetings, subject to certain exemptions, the Chennai-based firm said. Besides, TAFE will remain a long-term investor in AGCO, it added. While all commercial agreements between TAFE and AGCO will be mutually terminated, TAFE will honour outstanding supply orders and continue to supply parts for all markets on agreed terms, it stated. AGCO, in its statement, said, 'Parties have agreed to mutual non-disparagement and TAFE not engaging in public activism. TAFE will no longer be entitled to nominate a representative to the AGCO Board of Directors and AGCO's Director on TAFE's Board will step down.' The two companies said their 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. 'As we step into a new era in TAFE's growth story, we recognise and cherish the long partnership we've had with AGCO, and continue to support AGCO as an engaged shareholder,' TAFE Chairman & Managing Director Mallika Srinivasan said. Stating that TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years, she said, 'We re-dedicate our commitment to transformation of Indian agriculture through our innovative products, solutions and service to the farming community in India.' AGCO Chairman, President and CEO Eric Hansotia welcomed the reaching of an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters. '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,' Hansotia said. AGCO said it will file the agreements with the US Securities and Exchange Commission. Last year in September, AGCO Corporation terminated multiple agreements with TAFE, including the Massey Ferguson brand license agreement, a distributor agreement for India, Nepal, and Bhutan. Subsequently, a legal battle followed with TAFE taking the matter to the Madras High Court. PTI MSS RKL MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Hindu
3 days ago
- Business
- The Hindu
TAFE, AGCO reach settlement on brand rights, commercial, shareholding
Tractors and Farm Equipment Ltd. (TAFE ) and NYSE-listed AGCO Corporation said they had reached comprehensive settlement covering brand rights, commercials and shareholding. As per the settlement, the ownership of Massey Ferguson brand will rest with TAFE as the sole and exclusive owner for India, Nepal and Bhutan, including all rights, title and interest in 'Massey Ferguson' and related trademarks and all goodwill associated therewith. TAFE has agreed to buy back AGCO's shares in TAFE which amounts to 20.7% of TAFE's equity for a consideration of $260 million thereby making TAFE a wholly owned subsidiary of the Chennai based Amalgamations Group. Besides this TAFE will retain its shareholding in AGCO at an ownership level of 16.3%, and not exceed it, while participating in AGCO's future buyback programmes to maintain its proportionate ownership subject to certain exceptions. TAFE has agreed to support AGCO by voting in its favour all recommendations of AGCO's board of directors at shareholder meetings, subject to certain exemptions and will remain a long-term investor in AGCO through planned periodic interactions with AGCO leadership. 'While all commercial agreements between TAFE and AGCO will be mutually terminated; TAFE will honour outstanding supply orders and continue to supply parts for all markets on agreed terms,' both the companies said. 'All ongoing legal proceedings will be irrevocably and unconditionally withdrawn. A consent decree will be sought in the three suits relating to Massey Ferguson brand-currently pending before the Madras High Court in India,' they said. '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,' they added. Mallika Srinivasan, Chairman & Managing Director - TAFE in a statement said, 'As we step into a new era in TAFE's growth story, we recognise and cherish the long partnership we've had with AGCO, and continue to support AGCO as an engaged shareholder.' 'TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years. We re-dedicate our commitment to transformation of Indian agriculture through our innovative products, solutions and service to the farming community in India,' she added. 'We are pleased to have reached an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters,' said Eric Hansotia, AGCO's Chairman, President and CEO in a statement. '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 added.
Time of India
3 days ago
- Business
- Time of India
TAFE and AGCO reach comprehensive settlement
Chennai: Tractor and farm equipment maker TAFE and agri-machinery MNC AGCO have reached a "comprehensive settlement and resolution" after months of disagreement which had led to legal proceedings. The agreement resolves all outstanding disputes between TAFE and AGCO as well as TAFE's shareholding in AGCO, ownership and use of the Massey Ferguson brand in India and some other countries and other key issues. The settlement will mean TAFE will buy back AGCO's 20.7% stake in TAFE for $260 million. This will make TAFE a wholly owned subsidiary of the Amalgamations Group. That will also mean, "TAFE will no longer be entitled to nominate a representative to the AGCO board of directors and AGCO's director on TAFE's board will step down," said an AGCO statement. The agreement will make TAFE the sole and exclusive owner of Massey Ferguson brand for India, Nepal and Bhutan. This will include "all rights, title and interest in 'Massey Ferguson' and related trademarks and all goodwill associated therewith" said a TAFE statement. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai TAFE will retain its shareholding in AGCO at an ownership level of 16.3%, and not exceed it, while participating in AGCO's future buyback programmes. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like People Aged 50-85 With No Life Insurance Could Get This Reassured Get Quote Undo TAFE will remain a long-term investor in AGCO through planned periodic interactions with AGCO leadership, said a TAFE statement. TAFE will also support AGCO by voting of its shares in favour of all the recommendations of AGCO's board of directors at shareholder meetings, subject to certain exemptions. Post this, all commercial agreements between TAFE and AGCO will be mutually terminated. However, TAFE will honour outstanding supply orders and continue to supply parts for all markets on agreed terms, said the TAFE statement. It will also mean that all ongoing legal proceedings will be unconditionally withdrawn. "A consent decree will be sought in the three suits relating to Massey Ferguson brand-currently pending before the Madras High Court in India," said the Tafe statement. The agreements will become effective following 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. Said Mallika Srinivasan, CMD of TAFE, "We recognize and cherish the long partnership we've had with AGCO and continue to support AGCO as an engaged shareholder. TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years. We re-dedicate our commitment to transformation of Indian agriculture." Added Eric Hansotia, AGCO's chairman, president and CEO: "We are pleased to have reached an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters. We appreciate the TAFE relationship for its years as a commercial partner and continued support as a shareholder." Get the latest lifestyle updates on Times of India, along with Doctor's Day 2025 , messages and quotes!
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Business Standard
3 days ago
- Business
- Business Standard
TAFE settles AGCO dispute, retains Massey Ferguson brand in India
Tractor giants Tractors and Farm Equipment Ltd (TAFE) and the US-based AGCO have reached an out-of-court settlement on the dispute regarding the ownership of the Massey Ferguson brand in India, with the Chennai-based company retaining ownership of the iconic brand on an exclusive basis in India, Nepal and Bhutan. The settlement includes all matters relating to brand, commercial issues and shareholding. As part of the deal, TAFE will buy back AGCO's shares in TAFE, which amount to 20.7 per cent of TAFE's equity, for a consideration of $260 million, thereby making TAFE a wholly owned subsidiary of the Amalgamations Group, a diversified industrial conglomerate headquartered in Chennai. On the other hand, the Indian major has agreed to retain its shareholding in AGCO at an ownership level of 16.3 per cent, and not exceed it, while participating in AGCO's future buyback programmes to maintain its proportionate ownership subject to certain exceptions. TAFE is the single largest shareholder in AGCO, the third-largest farm equipment manufacturer in the world after Deere & Company and CNH Industrial. On the other hand, AGCO holds 21 per cent of TAFE. TAFE will remain a long-term investor in AGCO through planned periodic interactions with AGCO leadership. While all commercial agreements between TAFE and AGCO will be mutually terminated, TAFE said it will honour outstanding supply orders and continue to supply parts for all markets on agreed terms. All ongoing legal proceedings will be irrevocably and unconditionally withdrawn. 'As we step into a new era in TAFE's growth story, we recognise and cherish the long partnership we've had with AGCO, and continue to support AGCO as an engaged shareholder,' said Mallika Srinivasan, Chairman and Managing Director, TAFE. 'We are pleased to have reached an amicable resolution with TAFE on all outstanding commercial, governance and shareholding matters,' said Eric Hansotia, AGCO's Chairman, President and Chief Executive Officer. 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. 'TAFE and Massey Ferguson have been synonymous in the minds of the Indian customers for over 65 years. We re-dedicate our commitment to transformation of Indian agriculture through our innovative products, solutions and service to the farming community in India. As we move towards our vision of 'Cultivating the World', we are confident of delivering exceptional value to all our stakeholders,' Srinivasan added. The brand is crucial for TAFE, as out of its total annual production of over 180,000 tractors, over 100,000 are Massey Ferguson. Since its inception in 1960, TAFE has produced, built and nurtured the Massey Ferguson brand in India with over 3 million customers. '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,' Hansotia said. TAFE has agreed to customary provisions governing its shareholding in AGCO, including voting its shares in accordance with the recommendations of AGCO's Board of Directors on all proposals at AGCO's shareholder meetings, subject to certain agreed limited exceptions," an AGCO statement said. "Parties have agreed to mutual non-disparagement and TAFE not engaging in public activism. TAFE will no longer be entitled to nominate a representative to the AGCO Board of Directors and AGCO's Director on TAFE's Board will step down," it said. AGCO first announced the termination of its agreements with TAFE, including the brand licence for Massey Ferguson, in April, which kicked off a legal battle. On 19 November, both TAFE and AGCO claimed that the Madras High Court had favoured them in their dispute over Massey Ferguson, citing an order to maintain the 'status quo,' leading to confusion. The High Court in February had ordered both the companies to maintain the status quo. The journey of Massey Ferguson started in India in the 1960s when Chennai-based Amalgamations Group decided to manufacture these tractors in India. TAFE was founded as a joint venture between Massey Ferguson, a part of the AGCO Group, and Amalgamations in 1960. It was only in 1974 that the two companies first entered into a trademark agreement for limited tractors. This deal was further expanded in 1994, granting TAFE the exclusive right to use the Massey Ferguson (MF) brand name for its tractor operations in India.
Yahoo
15-05-2025
- Business
- Yahoo
AGCO Q1 Earnings Call: Cost Controls and Technology Investment Offset Industry Weakness
Agricultural and farm machinery company AGCO (NYSE:AGCO) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 30% year on year to $2.05 billion. The company's full-year revenue guidance of $9.6 billion at the midpoint came in 1% above analysts' estimates. Its GAAP profit of $0.14 per share was significantly above analysts' consensus estimates. Is now the time to buy AGCO? Find out in our full research report (it's free). Revenue: $2.05 billion vs analyst estimates of $2.01 billion (30% year-on-year decline, 1.8% beat) EPS (GAAP): $0.14 vs analyst estimates of -$0.06 (significant beat) Adjusted EBITDA: $159.2 million vs analyst estimates of $133.9 million (7.8% margin, 18.9% beat) The company reconfirmed its revenue guidance for the full year of $9.6 billion at the midpoint EPS (GAAP) guidance for the full year is $4.25 at the midpoint, beating analyst estimates by 9.9% Operating Margin: 2.4%, down from 9.3% in the same quarter last year Free Cash Flow was -$260.4 million compared to -$465 million in the same quarter last year Organic Revenue fell 27.6% year on year (-13.1% in the same quarter last year) Market Capitalization: $7.81 billion AGCO's first quarter results reflected a challenging environment for agricultural equipment, with management pointing to soft demand, dealer inventory reductions, and ongoing geopolitical trade friction. CEO Eric Hansotia highlighted that net sales fell due to lower industry demand and deliberate efforts to destock dealer inventories, while also noting progress in cash usage and working capital. CFO Damon Audia cited improved pricing and product mix in Europe, alongside early cost control benefits, as factors that helped the company outperform its internal expectations for the quarter. Looking ahead, AGCO's leadership reaffirmed its full-year guidance and emphasized its commitment to navigating tariff risks and maintaining cost discipline. Management stated that ongoing production cuts and channel inventory reductions are expected to position the company for recovery as industry conditions stabilize. The company continues to invest in smart farming solutions and digital capabilities, with a focus on premium brands like Fendt, and is closely monitoring potential impacts from evolving global trade policies and retaliatory tariffs. AGCO's management addressed several meaningful drivers behind the first quarter's performance and outlined areas of strategic focus and risk for the remainder of the year. Dealer Inventory Reduction: AGCO made significant progress lowering dealer inventories across all regions, prioritizing the alignment of production with retail demand to support future margin stability. Cost Control Initiatives: Leadership noted that cost savings from restructuring and operational efficiency programs are ahead of schedule, with $160 million in expenses incurred and a targeted $100–$125 million in savings expected by year-end. Tariff and Trade Impacts: Management discussed the adverse effects of new and existing tariffs, especially those affecting imports from the EU and China. The company is pursuing mitigation strategies, including selective price increases and supply chain adjustments, but expects tariffs to remain a headwind for sales and earnings per share. Precision Ag and PTx Trimble Integration: The integration of the PTx Trimble joint venture and increased adoption of precision farming technology were highlighted as contributors to product differentiation and channel expansion. The company reported a near tripling of AGCO dealers carrying PTx products since the end of last year. Regional Market Dynamics: AGCO described the European market as relatively stable due to subsidy support, while North America and South America continue to face weaker demand, leading to deeper production cuts. Brazil showed early signs of recovery, particularly in smaller tractors, but larger equipment demand remains subdued. Management expects the remainder of the year to be shaped by continued dealer inventory reductions, cost discipline, and the ability to navigate trade-related uncertainties while advancing technology initiatives. Trade Policy and Tariffs: The evolving landscape of tariffs, particularly between the EU, China, and the US, poses ongoing uncertainty. Management believes that new tariffs could further impact North American sales volumes and profitability, and mitigation strategies will remain a focus. Smart Farming and Precision Ag: Ongoing investment in precision agriculture solutions, such as the PTx product suite, is expected to support premium product sales and longer-term market share gains, especially as channel readiness improves. Cost Structure Transformation: The structural cost reductions implemented over the past year are projected to enhance operating leverage when market demand rebounds, potentially leading to higher incremental margins as industry conditions improve. Jamie Cook (Truist): Asked about better-than-expected Q1 performance and tariff mitigation. Management credited favorable pricing and cost controls, noting that tariff actions are expected to be a net negative for sales and earnings. Kyle Menges (Citigroup): Inquired about European margin sustainability and the risk of product mix shifts. Leadership stated Fendt remains strong, with stable margins expected due to continued product innovation. Kristen Owen (Oppenheimer): Sought clarification on mechanics behind full-year guidance and capital allocation changes. Management detailed how tariff and FX impacts net out, and signaled ongoing discussions with a major shareholder could affect share buybacks. Jerry Revich (Goldman Sachs): Questioned contingency plans for shifting Fendt production to the US. AGCO said it routinely evaluates production footprint scenarios but will defer major changes until trade policy stabilizes. Tami Zakaria (JPMorgan): Asked about pricing strategy for premium brands if EU tariffs increase. Management said cost increases would be spread across the product portfolio rather than concentrated on a single brand or model. In future quarters, the StockStory team will be watching (1) progress on dealer inventory reductions and the timing of production realignment, (2) updates on precision agriculture adoption and channel expansion for the PTx Trimble partnership, and (3) developments in global trade policy and tariffs, particularly their impact on North American and European sales. The company's ability to maintain cost discipline and capitalize on early signs of recovery in Brazil will also be closely monitored. AGCO currently trades at a forward P/E ratio of 22.1×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
