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 )

and retailer Mattress Firm.

Tempur Sealy ( TPX ) 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 Serta Simmons Bedding ( SRTA )

and Purple Innovation Inc. ( PRPL )

"By cutting off or degrading rivals' access to Mattress Firm

as a retail channel, Tempur Sealy's ( TPX ) acquisition could result in

higher mattress prices, decreased product quality and choice, or

reduced innovation," the FTC said in a statement.

Spokespersons for Tempur Sealy ( TPX ) and Mattress Firm did not

immediately respond to requests for comment on the FTC's

announcement.

Tempur Sealy ( TPX ) has said it expected to complete the

purchase of Mattress Firm in the second half of 2024.

To address potential regulatory concerns, Tempur Sealy ( TPX )

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.