Tempur Sealy International proposed the acquisition of Mattress Firm.
The Federal Trade Commission authorized a lawsuit to halt the acquisition of Mattress Firm by Tempur Sealy International. The vertical acquisition would merge manufacturing and supply with retail, “giving the combined company enormous power at multiple parts of the mattress supply chain.“
The agency stated, “The world’s largest mattress supplier and manufacturer—will have the ability and incentive to suppress competition and raise prices for mattresses for millions of consumers once it acquires Mattress Firm.“
“Through emails, presentations, and other deal documents, Tempur Sealy has made it abundantly clear that its acquisition of Mattress Firm is intended to kneecap competitors and dominate the market,” said Director Henry Liu of the FTC’s Bureau of Competition. “This deal isn’t about creating efficiencies; it’s about crippling the competition, which would raise prices on an essential good and could lead to layoffs for good paying American manufacturing jobs in nearly a dozen states.”
As the Lord Leads, Pray with Us…
- For Director Liu to seek God’s wisdom as he oversees the FTC’s Bureau of Competition.
- For commissioners of the FTC to be prudent as they assess the benefits and downsides of mergers and acquisitions.
Sources: Federal Trade Commission
