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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.

NZ Rugby sues Ineos for breach of contract, claiming the British firm exited its sponsorship deal early, three years ahead of schedule.

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) 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.