Massey Ferguson row: Tafe-AGCO brand battle reaches US shareholders

American firm responds, says Chennai company's interests 'misaligned'

The battle between Indian tractor major Tractors and Farm Equipment (TAFE) and the US based AGCO Corporation over Massey Fergusontrademark has taken a fresh turn with TAFE writing a letter to shareholders of AGCO, raising concerns about the company management and called for a “restructured and more empowered Board”.

In response to this, AGCO said in a statement that the Chennai-based company’s interests were “misaligned” with the US giant’s other stakeholders and it is a “self-serving campaign” that TAFE is running. TAFE owns approximately 16.3 per cent of AGCO’s outstanding shares. 

The public spat comes a day after TAFE filed a contempt petition against its long-term partner AGCO after the US major’s termination of its agreements with TAFE, which included the brand licence for Massey Ferguson tractors.

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. 

“As the company has struggled in recent years to integrate acquisitions and expand into new markets, we have drawn on our experience to provide leadership with pragmatic suggestions. Unfortunately, AGCO has responded by ignoring these ideas, taking measures to disenfranchise TAFE, and isolating our representative on the Board,” TAFE letter said. 

“This seemingly unjustifiable intransigence has resulted in the deterioration of the company’s competitive position and financial performance versus peers and is now forcing us to deviate from our preferred method of private engagement,” it added. 

AGCO, on the other hand, said the immediate termination of TAFE’s right to use the Massey Ferguson trademark and distribute Massey Ferguson products in India and other countries are following TAFE’s “inappropriate and unauthorised actions”.

“Incumbent leadership has not taken shareholders’ concerns seriously. For years, we have repeatedly expressed our concerns regarding the company’s governance and strategy both privately through our board representative and publicly. However, many issues persist today, which is one of the reasons why new leaders are needed in the boardroom,” TAFE letter added.

According to TAFE, its products are India-centric in design, distinctly different from AGCO’s products and ideally suited for small and medium farmers of India and across the world. AGCO’s global brand website has historically for six decades made no mention of the Massey Ferguson in the context of India, Nepal and Bhutan having ceded the entire territory to TAFE since the take-over of Massey Ferguson India in 1960, TAFE said in a separate statement.

TAFE had asserted its claims over the ownership of the Massey Ferguson brand in a case filed before the Madras High Court.

The Commercial Court in Chennai had ruled in favour of TAFE with an interim status quo order with respect to the Massey Ferguson brand as hitherto in April 2024. 

“It is therefore impermissible for either party to disturb the position, and any attempt to do so will be violation of the court orders. TAFE has filed a petition against AGCO for disobedience of the orders of the court in a contempt petition in Chennai,” the statement added.  

Tractor tussle

1994: Signs trademark deal for exclusive use of Massey Ferguson (MF) tractor brand in India

2012: Tafe acquires AGCO shares, and is now its majority shareholder

Apr 2024: AGCO terminates trademark allegedly without prior notice 

May 2024: Chennai commercial court grants relief to Tafe

Sep 2024: AGCO issues termination notices to Tafe, ending their 28-year partnership

> Tafe approaches Chennai court with a petition against AGCO