01:27 PM EDT, 07/02/2024 (MT Newswires) -- (Updates with details throughout.)

The US Federal Trade Commission has voted to block Tempur Sealy International's ( TPX ) $4 billion acquisition of Mattress Firm, the regulator said Tuesday.

The Commission voted 5-0 to challenge the deal, saying it would give Tempur Sealy ( TPX ) "the ability and incentive to suppress competition and raise prices for mattresses for millions of consumers."

The regulator said it has issued an administrative complaint and authorized a lawsuit in federal court to block the transaction.

"Through emails, presentations, and other deal documents, Tempur Sealy ( TPX ) has made it abundantly clear that its acquisition of Mattress Firm is intended to kneecap competitors and dominate the market," Henry Liu, director of FTC Bureau of Competition said.

Tempur Sealy ( TPX ) said in a separate statement that FTC's decision does not reflect all the relevant facts and regulations. The company expects to complete the litigation process in the coming months and aims to close the deal in late 2024 or early 2025.

The FTC's decision to block the deal was earlier reported by Reuters.

Mattress Firm did not immediately respond to MT Newswires' requests for comment.

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