FTC Fights Tempur Sealy-Mattress Firm Deal as Khan Era Wraps (1)

Tempur Sealy International Inc.’s planned $4 billion purchase of Mattress Firm would give it the power and incentives to box out competitors and harness the specialty retailer for itself, the Federal Trade Commission argued Tuesday as it kicked off a trial over the deal.

Company records from Tempur Sealy, the global mattress manufacturer, show that executives saw Mattress Firm as a “kingmaker” because of its massive national retail footprint, as well as a vehicle to undercut their rivals, according to the FTC.

Such statements are “the tip of the iceberg,” FTC counsel Allyson Maltas said. “We’re not bringing this case ...