Tempur Sealy-Mattress Firm Deal Concessions Are Flawed, FTC Says

The post-trial concessions Tempur Sealy International Inc. and Mattress Firm Inc. are offering as they try to cement a $4 billion tie-up would still fail to protect competition in the mattress industry, the Federal Trade Commission said.

The agency lodged the argument in response to a new pledge by Tempur Sealy and Mattress Firm to make more of their stores’ floor space available to rival mattress suppliers—one of many proposals they have put forth to overcome an FTC lawsuit aiming to block the proposed merger.

Beyond the structural problems, the FTC argued the companies’ proposal should have no bearing on ...