3M abandons acquisition bid under Justice pressure

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Associated Press

Posted on September 5, 2012 at 7:01 AM

Updated Wednesday, Sep 5 at 7:01 AM

WASHINGTON (AP) — The Justice Department says the office products firm 3M Co. has abandoned its plan to acquire its closest competitor in the sale of adhesive-backed labels and sticky notes. The department attributed the move to a threatened civil antitrust lawsuit by the agency.

The department says that 3M's proposed $550 million acquisition of Avery Dennison Corp.'s Office and Consumer Products Group, which includes Avery's label business, would have substantially lessened competition in the sale of labels and sticky notes, resulting in higher prices and reduced innovation.

The proposed merger would have given 3M, maker of Post-It sticky notes, more than 80 percent of the U.S. business in both labels and sticky notes.

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