TAFE files contempt petition against AGCO over Massey Ferguson brand

Tractors and Farm Tools Restricted (TAFE) on Monday mentioned it has filed a contempt petition in opposition to US-based AGCO Company alleging disobedience of orders of a Business Court docket in Chennai. TAFE additionally asserted its claims over the possession of the Massey Ferguson model.

TAFE, the second largest producer of tractors in India and the third largest globally, acquired shareholding in AGCO in 2012 to grow to be its single largest shareholder and strategic long-term investor.

In U.S. Securities and Trade Fee filings, TAFE expressed issues over ongoing governance, capital allocation, operational and strategic shortcomings at AGCO.

Regardless of its efforts to have interaction with AGCO to resolve its issues, the latter continued to ignore TAFE’s ideas aimed toward enhancing operational efficiency, strategic execution, capital allocation insurance policies and company governance, it mentioned.

AGCO has sought to stifle TAFE’s means to hunt modifications via ill-advised strikes with respect to model utilization that has for over six many years been an uncontested space, TAFE alleged in a press release.

The Business Court docket in Chennai has dominated in favour of TAFE with an interim established order order with respect to the Massey Ferguson model. It’s due to this fact impermissible to disturb the place as on 29 April, and any try to take action shall be violation of courtroom orders, TAFE mentioned.

TAFE mentioned with a completeannual manufacturing of greater than 180,000 tractors, over 100,000 Massey Ferguson are produced by the corporatein India with over three million happy clients in its fold. TAFE and Massey Ferguson are synonymous in India.