Department of Justice vetoes AM/Avery Deal
Friday, 28 September 2012 | Admin
3M has denied US Department of Justice (DOJ) claims that they have abandoned their plan to acquire Avery Dennison’s Office and Consumer Products Group.
The DOJ had announced it would file a civil antitrust lawsuit to block the deal, and that 3M and Avery had then abandoned the deal. The DOJ claimed that the proposed acquisition would have substantially lessened competition in the sale of labels and sticky notes, resulting in higher prices and reduced innovation for US consumers.
The two companies issued a statement in response to the DOJ news release:
“3M and Avery Dennison have not terminated the purchase agreement governing the transaction. In light of concerns about the transaction raised by the DOJ, the companies have voluntarily withdrawn the notification and report forms filed under the Hart-Scott-Rodino Act.
"The companies continue to believe the transaction would benefit customers and consumers. 3M and Avery Dennison are committed to working together to explore options to address the DOJ’s concerns, obtain regulatory approval, and complete a transaction between the parties.”