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.

New Zealand Rugby has launched legal action against the Ineos corporation of British billionaire Jim Ratcliffe after the global chemical giant dropped a sponsorship agreement with three years remaining.