3M Continues to Try to Acquire Avery Dennison’s Office-Products Division

In recent weeks, 3M Co. and the U.S. Department of Justice have been at odds regarding 3M’s desire to buy the office-products division of Avery Dennison Corporation.  News reports claim that 3M is working to address concerns of the DOJ regarding the $550 million acquisition.  Antitrust concerns are the big issue; early in September, the Justice Department threatened to block the deal by filing a lawsuit.

The Department of Justice’ concern was that the merger would mean 3M company owned 80% of the U.S. markets in sticky notes and labels.  3M, maker of well-known Post-it notes, continues to work toward acquiring the office products division, although the DOJ announced on September 4 that 3M had dropped its plan; this was not so, according to 3M.

In a statement made on September 5, 3M said both companies (3M and Avery Dennison) believed the transaction could benefit both consumers and customers.  The companies were working in unison to obtain regulatory approval, address the DOJ’s concerns, and ultimately complete the transaction.

Originally, the acquisition was announced in January and expected to close following regulatory approvals in the second half of 2012.  On September 19, news reports revealed that 3M was continuing to address objections.  3M CFO David Meline informed investors that “We have a contract that remains in place at the present time and we are reviewing the situation.”

Chief Executive Officer at 3M, Inge Thulin, took his position at the company in February of this year.  According to Thulin, under his tenure 3M would approach acquisitions differently than in the past, stating that “fewer, but slightly bigger” acquisitions would be the goal of the company.

As experienced Los Angeles mergers and acquisitions attorneys, we understand the obstacles companies and corporations face today as well as the strategies typically used in these transactions.  Let the senior-level attorneys at the Law Offices of Spotora & Associates assist you with your M & A deal, whether you need guidance in equity financing, regulatory filings, corporate governance or other areas related to mergers and acquisitions.

This entry was posted on Monday, September 24th, 2012 at 3:12 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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