FTC sues to block $4B merger of mattress firms
Why did the FTC sue to block the Tempur Sealy-Mattress Firm merger?
The FTC sued to block the Tempur Sealy-Mattress Firm merger due to concerns that the combined company would have the ability and incentive to suppress competition and raise prices for mattresses, potentially harming millions of consumers. The merger would also give the combined firm significant power over rival mattress suppliers, which could lead to reduced innovation, decreased product quality, and potential layoffs in the industry3.
What concerns did FTC commissioners have about the merger?
The FTC commissioners had concerns that the proposed $4 billion merger between mattress manufacturer Tempur Sealy and retailer Mattress Firm would harm competition, potentially leading to higher prices, lower product quality, and reduced consumer choice23. They feared the vertical acquisition would allow the combined firm to cut off competitors' access to the market.
How would the merger affect Tempur Sealy's store count globally?
The merger between Tempur Sealy and Mattress Firm would increase Tempur Sealy's store count globally to around 3,000 stores4. This is because Mattress Firm has more than 2,300 store locations, which, when combined with Tempur Sealy's existing stores, would result in a significant expansion of their retail footprint4.