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DOJ Pressure Causes 3M to Abandon Acquisition

Office products giant 3M Co. has abandoned its plan to acquire its closest competitor in the sale of adhesive-backed labels and sticky notes, the Justice Department said Tuesday, attributing the move to a threatened civil antitrust lawsuit by the agency.

The department said that 3M's proposed 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. 3M and Avery agreed last December that 3M would acquire Avery Dennison's office products group for $550 million.

Source: AP. Read full article. (link)

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  • Sevo||

    Shermer (with apologies):
    1) If you charge less than your competition, you're engaged in predatory pricing.
    2) If you charge more, you're engaged in 'gouging'.
    3) If you charge the same, you're colluding.
    4) If you have no competition, you're a monopoly.
    In any of those four circumstances, you're in danger of drawing the DOJ down on your company.
    Is it any wonder why lobbying is one of the growth industries?

  • Homple||

    It's the Department of Holder. It has anything to do with Justice.

  • ||

    The department said that 3M's proposed acquisition http://www.airmaxsalle.com/hom.....-c-33.html 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. 3M and Avery agreed last December that 3M would acquire Avery Dennison's office products group for $550 million.

  • RightNut||

    Not a dreaded sticky note monopoly, whatever will we do if the price of sticky notes rises???!

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