Investing.com -- AGCO Corporation (NYSE: AGCO ) stock rose 2.7% after the agricultural machinery manufacturer announced a new $1 billion share repurchase program.

The Duluth, Georgia-based company said the authorization follows the pending resolution with Tractors and Farm Equipment Limited. Share repurchases may be made in open market transactions at prevailing market prices or through privately negotiated transactions, with the company potentially entering into Rule 10b5-1 plans to facilitate the buybacks.

"AGCO has always maintained a disciplined and robust capital allocation plan, prioritizing the most effective deployment of capital to maximize shareholder value," said Eric Hansotia, AGCO’s chairman, president and CEO. "We are excited to announce this new substantial program as we believe this use of capital will benefit our investors while preserving financial flexibility to invest in our business, maintain our investment grade credit ratings and allow us to continue executing our Farmer-First strategy."

The company emphasized that the actual timing, number, and value of shares repurchased will depend on several factors, including the trading price of the stock, general market conditions, and applicable legal requirements. The program does not obligate AGCO to repurchase any shares and may be suspended, discontinued, or modified at any time.

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