Despite US authorities vetoing 3M's US$500 million takeover of Avery Dennison, both companies are still hoping to go through with the deal after addressing anti-trust issues.
The companies issued a statement in response to a US Justice Department news release saying the companies had dropped the proposed acquisition.
However, the companies said they have withdrawn their application for anti-trust clearance to work on addressing the anti-trust issues.
The Justice Department had threatened to sue to halt the acquisition, which would have given 3M, maker of Scotch tape and Post-It sticky notes, more than 80 per cent of the US business in both labels and sticky notes.
The government said the proposed acquisition, 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.
