US to block Tempur Sealy's $4 billion Mattress Firm deal
Adds background in paragraphs 2-7 and 9
By Jody Godoy
July 2 (Reuters) -The U.S. Federal Trade Commission said on Tuesday it will sue to block the $4 billion merger between mattress manufacturer Tempur Sealy International Inc TPX.N and retailer Mattress Firm.
Tempur Sealy had announced the cash-and-stock deal in May 2023, seeking to add Mattress Firm's more than 2,300 brick-and-mortar store locations. The combined company would have about 3,000 stores globally.
The FTC voted 5-0 to block the deal, voicing concern about the effects on competition with rivals including Serta Simmons Bedding SRTA.PK and Purple Innovation Inc PRPL.O that could lead to higher prices for consumers and potential job losses for manufacturing workers.
"This deal isn’t about creating efficiencies; it’s about crippling the competition," said Henry Liu, head of the FTC's Bureau of Competition.
Tempur Sealy said in a statement that it was disappointed with the regulator's decision and that the stores it would acquire are a small fraction of bedding retail locations in the U.S.
The bedding maker also said it had engaged with the unions that represent its employees and that none had opposed the deal.
The vast majority of mattresses purchased in the U.S. are made domestically, with around $7.8 billion in sales last year, compared with around $809 million in imports, according to statistics compiled by the International Sleep Products Association.
Tempur Sealy had expected to complete the deal this year. It now envisions resolving the litigation in the coming months and closing late this year or in early 2025.
To address potential regulatory concerns, Tempur Sealy has said it could divest some stores, and in May said it signed agreements with six other mattress makers for Mattress Firm stores to continue carrying their brands.
The merger agreement includes a $50 million break-up fee for FTC issues and a maximum store divestiture limit, Tempur Sealy CEO Scott Thompson said last year.
Reporting by Jody Godoy; Editing by Chizu Nomiyama and Josie Kao
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
