Labelling, tag and ticket supplier Avery Dennison has been given anti-trust clearance from the Federal Trade Commission to buy Paxar Corp for $1.34bn, a deal that was announced at the end of last month.

The merger is still subject to shareholder and regulatory approval, but Avery Dennison is confident that it will have regulatory approval outside the US by the end of the second quarter.

Buying its rival Paxar will enable Avery Dennison to shore up its position in the expanding global retail information and brand identification market.