3M Co. said that it remains in talks to buy Avery Dennison Corp.’s office-products unit, just hours after the U.S. Department of Justice announced that the $550 million deal had been abandoned, Bloomberg BusinessWeek reports.

Avery of Pasadena and 3M of St. Paul, Minn. said in a joint statement late Tuesday that they are “working together to explore options to address the DOJ’s concerns, obtain regulatory approval, and complete a transaction."

The Justice Department said Tuesday afternoon that the deal had been dropped after it had moved to block a sale on antitrust concerns. The addition of Avery's Brea-based office products business would give 3M more than 80 percent of the U.S. market for labels and sticky notes, regulators said.

For reprint and licensing requests for this article, CLICK HERE.