Since 1960 India-based TAFE Tractors has had a trademark agreement with Massey Ferguson, allowing it to produce tractors badged as MF for sale in that country. TAFE still builds newer versions of old MF tractors, including the very vintage model 35. The trademark agreement was most recently updated in 1994.
However, Agco — which has owned the Massey Ferguson business worldwide since 1994 — surprised the financial community this spring by suddenly attempting to end that agreement, without giving TAFE any prior notice. But an Indian court recently ruled in favour of TAFE, allowing the agreement to remain in place.
No reason was given by Agco for the move, but it is believed to be the result of TAFE acquiring more Agco stock than was previously agreed upon. TAFE now owns about 16 per cent of the outstanding shares of Agco, and TAFE CEO Mallika Srinivasan even sits on Agco’s board of directors. Agco also owns 21 per cent of TAFE’s shares.
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The announcement came one day after an April 25 board meeting, in which Srinivasan left apparently unaware of the pending decision. There are reports of more than a decade of friction between the two brands, which may have lead up to the recent announcement.
