FTC’s Attempt to Stop Mattress Deal Shines Light on Vertical Mergers

Federal Trade Commission’s complaint to block Tempur Sealy International Inc.purchase plans of Firm mattress For $4 billion, this project will provide information on how courts evaluate vertical agreements between two companies at different levels of the supply chain.

Last week, the FTC voted unanimously to file suit to stop the acquisition, which would combine a maker of major brands including Tempur-Pedic, Sealy Posturepedic and Stearns & Foster, with Mattress Firm, a U.S. specialty retailer with thousands of physical stores.

This is the FTC’s first challenge involving a vertical agreement since the agency and the Justice Department filed a December…