By Brent Kendall
WASHINGTON--3M Co. (MMM) has abandoned its planned acquisition
of Avery Dennison Corp.'s (AVY) office and consumer-products
business after being threatened with an antitrust lawsuit by the
Justice Department, the agency said late Tuesday.
The department said it would have gone to court to block the
deal, which it said would have harmed competition in the sale of
labels and sticky notes. Had the transaction been allowed to
proceed, 3M would have held more than an 80% share of the U.S.
markets for those office products, the department said.
"As a result of the abandonment of this transaction, American
customers will continue to receive the benefits of competition
including lower prices and greater innovation in these basic office
supplies," said Joseph Wayland, the acting head of the Justice
Department's antitrust division.
The companies announced the $550 million deal in January. The
Avery office business unit is a leading supplier of labels, binders
and filing products. 3M had said the deal would broaden its
presence in the office-supply industry. It had planned on closing
the deal in the second half of this year.
Company representatives didn't immediately respond to requests
for comment.
Write to Brent Kendall at brent.kendall@dowjones.com
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