logo-loader

3M, Avery Dennison end $550 mln consumer products deal

Published: 08:26 04 Oct 2012 EDT

no_picture_pai

Manufacturer 3M Co. (NYSE:MMM) and Avery Dennison Corp. (NYSE:AVY) have terminated a deal under which 3M would have bought Dennison's office and consumer products business.

The move comes after government antitrust regulators had raised objections to the deal, leading to confusion about the deal's status.

The Justice Department said in September that the two companies were abandoning the deal, while 3M and Avery said at the time the $550 million transaction was still on the table. 

The companies said last month only that they had withdrawn the deal from the government antitrust-review process.

The government had complained that the deal would have harmed competition in the market for labels and sticky notes. Had the transaction proceeded, 3M would have held a more than 80 per cent share of the U.S. markets for those office products, the department said.

It wasn't the only deal 3M has in the pipeline; the manufacturer agreed earlier this week to acquire advanced ceramic maker Ceradyne (NASDAQ:CRDN) for around $860 million.

Avery Dennison said Wednesday that it would continue to pursue a sale of the business. 

3M said earlier Wednesday that it plans to reduce the number of its major business groups to five from six starting next year, the latest big manufacturer to realign its organizational structure in an effort to improve its competitiveness.

3M's range of products includes Scotch tape, Nexcare bandages and Post-it notes.

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

22 minutes ago