Ineos has blamed "cost-saving measures" across its business for an alleged "breach" of its sponsorship of New Zealand Rugby (NZR), a move that has led to legal action from the governing body.

The British petrochemical firm, which co-owns Manchester United as part of its sport portfolio, has walked away early from its sponsorship deal of NZR.

In 2021 Ineos, which is chaired by Sir Jim Ratcliffe, agreed to become performance partner of NZR from 2022 to 2027.

The deal included Ineos branding on the back of playing shorts and on the front of training jerseys for the nation's teams, including three-time World Cup winners the All Blacks and six-time women's world champions the Black Ferns.

In a statement on Tuesday, NZR said Ineos had "failed to pay the first instalment of the 2025 sponsorship fee, confirming its decision to exit our six-year agreement".

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."

Ineos says it has contributed more than 30m US dollars (24m) to the rugby teams in recent years.

Citing the struggling chemicals industry in Europe because of "high energy taxes and extreme carbon taxes", Ineos said in a statement: "We have had to implement cost-saving measures across the business.

"We sought to reach a sensible agreement with the All Blacks to adjust our sponsorship in light of these challenges.

"Unfortunately, rather than working towards a managed solution, New Zealand Rugby has chosen to pursue legal action. We remain in ongoing discussion."

NZR rugby added it was "actively pursuing new commercial opportunities and global interest in the All Blacks and other teams in black remains high".