Chemical producer INEOS has said it is in discussions with New Zealand Rugby (NZR) following the sport federation's decision to pursue legal action over a sponsorship dispute. NZR said on Tuesday that INEOS had breached their contract and failed to pay a sponsorship fee,

New Zealand Rugby (NZR) has launched legal action against INEOS, the petrochemical company which owns a minority stake in Manchester United, after it allegedly cut short a long-term sponsorship agreement.

Ineos Group dropped its sponsorship of New Zealand’s All Blacks rugby team as part of cost-savings measures in face of difficult trading conditions in Europe’s chemicals industry, the company said.