Chennai: Indian tractor maker Tafe and US-based agri-machinery company AGCO have reached a “comprehensive settlement and resolution” after months of disagreement over brand rights, among other issues, which had led to legal proceedings.The agreement, which resolves all disputes between Chennai-based Tractors and Farm Equipment (Tafe) and AGCO, will make Tafe the exclusive owner of Massey Ferguson brand for India, Nepal and Bhutan. Under the settlement, Tafe will buy back Agco’s 20.7% stake in the company for $260 million. This will make Tafe a wholly owned subsidiary of the Amalgamations group.

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. Tafe will remain a long-term investor in AGCO through periodic interactions with AGCO leadership, said a Tafe statement.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, the statement said. It will also mean that all ongoing legal proceedings will be unconditionally withdrawn. 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.“We recognize and cherish the long partnership we’ve had with Agco and continue to support Agco as an engaged shareholder,” said Mallika Srinivasan, CMD of Tafe.