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) says it has launched legal action against Ineos for alleged breach of contract, saying the British petrochemicals company has walked away three years early from its 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,

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

British billionaire has blamed high energy costs and carbon taxes for attempting to amend six-year deal with New Zealand Rugby