The Federal Trade Commission (FTC) has announced its intention to file a lawsuit to block the proposed $4 billion merger between mattress manufacturer Tempur Sealy and retailer Mattress Firm. The deal, initially announced in May 2023, would see Tempur Sealy acquiring Mattress Firm and its more than 2,300 stores in a cash-and-stock deal, creating a combined company with about 3,000 stores worldwide. The FTC's decision to block the merger was a unanimous 5-0 vote, citing concerns about its potential impact on competition, particularly with rivals Serta Simmons Bedding and Purple Innovation. The agency alleges that the merger would allow the combined firm to limit competitors' access to the market, potentially raising mattress prices and reducing consumer choice and product quality. The FTC's Bureau of Competition Director, Henry Liu, stated that the acquisition's intent was to "cripple the competition" rather than create efficiencies, potentially leading to higher prices and job layoffs in American manufacturing. Mattress Firm expressed disappointment with the FTC's decision, maintaining that the merger would benefit consumers, employees, and the bedding and furniture industry. Tempur Sealy has consistently stated its readiness to litigate the matter should the FTC move to block the merger. The FTC's lawsuit is based on concerns that the merger could lead to higher prices for consumers and discriminate against competing manufacturers and their American workforce. Tempur Sealy, on the other hand, argues that the bedding industry is highly competitive and that the merger would unlock benefits for all stakeholders, particularly consumers. The FTC's lawsuit aims to prevent the merger, citing potential negative impacts on competition, consumer prices, and American manufacturing jobs.
