AGCO Announces Agreements Reached with TAFE on Key Commercial and Other Issues

Core Viewpoint - AGCO Corporation has reached a comprehensive agreement with Tractors and Farm Equipment Limited (TAFE) to resolve all outstanding disputes and governance issues, including shareholding and brand ownership matters related to the Massey Ferguson brand in India and other countries [1][3]. Commercial Terms - All commercial agreements between AGCO and TAFE will be terminated with agreed wind-down provisions [6]. - TAFE will repurchase AGCO's current shareholding in TAFE for an aggregate amount of $260 million, subject to compliance with applicable law [6]. Governance and Shareholding Terms - Ownership of the "Massey Ferguson" brand will rest exclusively with TAFE in India, Nepal, and Bhutan [6]. - TAFE retains the right to maintain its current ownership level of 16.3% but will participate in future share repurchase programs executed by AGCO [6]. - TAFE will no longer have the right to nominate a representative to the AGCO Board of Directors, and AGCO's Director on TAFE's Board will step down [6]. - The parties have agreed to mutual non-disparagement and TAFE will not engage in public activism [6]. Company Background - AGCO is a global leader in agricultural machinery and precision ag technology, with net sales of approximately $11.7 billion in 2024 [5].