But the FTC can still appeal
YSN Staff
UPDATE! TempurSealy said the FTC has decided not to appeal a federal court’s decision, and now expects to close its acquisition of Mattress Firm today (Feb. 5).
Following seven months of antitrust litigation, a federal court in Texas gave TempurSealy International (TSI), the world’s largest mattress manufacturer, its tacit OK to acquire Mattress Firm, the nation’s leading bedding retailer.
The controversial merger had been fiercely contested by the Federal Trade Commission (FTC), which argued that the $4 billion deal would consolidate market share, quell competition and lead to higher mattress prices for consumers.
But TSI successfully countered that the agency had grossly overstated the impact of the combined businesses, which would still face stiff competition from direct-to-consumer vendors, online merchants and thousands of independent dealers.
Open Arms
More recently, TSI sweetened the pot by promising to increase the amount of floor space Mattress Firm would dedicate to competitors’ up-market mattresses, from 28% to 43% of its premium slots.
In his ruling last Friday, a U.S. district court judge rejected the FTC’s objections to the merger without explanation. A redacted version of his decision was scheduled to be released yesterday, excluding confidential and proprietary information that influenced the judgement, Bloomberg reported.
However, the deal cannot be concluded before this Friday, Feb. 7, in order to give the FTC sufficient time to appeal the decision before a federal appeals court in New Orleans.
In a statement, TSI said “Despite the FTC’s ongoing efforts to block the transaction, we will make every effort to close it as soon as possible,” USA Herald reported.
Added Mattress Firm CEO John Eck, “We look forward to continuing to build on our legacy to innovate and shape the future of better sleep for millions.”
The ruling came just 10 days before the proposed acquisition was set to expire.
