The petrochemical company, which owns a minority stake in Manchester United, allegedly cut short a long-term sponsorship deal.

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,

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.

New Zealand Rugby (NZR) has launched legal action against former sponsor INEOS for alleged breach of contract, saying the global chemicals producer had walked away from a six-year deal three years early.

It added: "Having learned of Ineos' decision to walk away three years early, we have moved to protect the interests of New Zealand Rugby and the wider game. "We have been left with no option but to launch legal proceedings to protect our commercial position.