News outlet says FTC preps lawsuit to block Tempur Sealy, Mattress Firm deal

WASHINGTON – Just as most industry insiders were confident that the Tempur Sealy International acquisition of Mattress Firm was going to make it through government scrutiny, the Federal Trade Commission now appears to be preparing a lawsuit aimed at stopping the merger.

That’s according to a report from subscriber-only news site Politco Pro.

The outlet posted the story  citing three sources (subscription required) with knowledge. The story indicates that the FTC is preparing a lawsuit to block the $4 billion acquisition of the industry’s largest mattress retailer.

Politico Pro said the FTC indicated that the deal “could lead to higher prices on pricey yet ubiquitous consumer goods and discriminate against competing manufacturers and their largely American workforce.”

The FTC also intends to highlight in the lawsuit the potential impact of the merger on U.S. manufacturing jobs, although that would not be a formal basis to challenge the deal, according to one of the people.

Tempur Sealy International has said consistently since the proposed deal was announced that it was prepared to litigate the matter should the FTC move to block it.

Furniture Today will continue to update this news as it develops.

See also:

  • FTC decision on Tempur Sealy, Mattress Firm deal could come next week
  • Tempur Sealy continues to ink supplier agreements, moving toward acquisition’s close

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