3M Still Pursuing Avery Dennison Purchase Despite Department of Justice Antitrust Lawsuit Threat
St. Paul, Minnesota-based 3M, parent company to supplier 3M Promotional Markets, has stated that the company is still working with Avery Dennison Corp. on a purchase agreement, despite a report from the U.S. Department of Justice (DOJ) claiming that the deal has been terminated.
In January, 3M announced that it had reached a definitive agreement with Avery Dennison to acquire the Pasadena, California-based corporation's office and consumer products (OCP) business for approximately $550 million. The DOJ analyzed the purchase agreement, and found that 3M and Avery Dennison already dominated the sticky notes and labels markets in the U.S., respectively. According to the department's research, 3M would control more than 80 percent of those markets after the purchase. As a result, the DOJ indicated it would file an antitrust lawsuit to prevent the deal.