FTC votes to block major mattress company merger

The Federal Trade Commission (FTC) unanimously blocked the $4 billion merger of mattress giants Tempur Sealy and Mattress Firm.

Tempur Sealy, the world’s largest mattress supplier, had agreed to acquire Mattress Firm, the largest bedding retailer in the United States, in a deal worth roughly $4 billion.

The big picture: The FTC authorized a lawsuit in federal court to prevent the acquisition, citing concerns that the deal would stifle competition, increase prices for mattress buyers, and grant the companies significant market power in the mattress supply chain.

• The Commission stated that documents indicated competing mattress suppliers would lose access to a crucial retail channel, potentially leading to job losses among American workers.
• Henry Liu, Director of the FTC’s Bureau of Competition, expressed that the acquisition was intended to undermine competitors and dominate the market, rather than to create efficiencies.
• The merger would have resulted in a combined entity with 3,000 stores and 71 manufacturing facilities, with an expected closing date in the second half of 2024.