Tempur Sealy Deal for Mattress Firm Faces Uphill Battle With FTC — Market Talk
1727 ET - Tempur Sealy still faces an uphill fight to acquire Mattress Firm after it said on Monday it would sell dozens of Mattress Firm locations and the Sleep Outfitters retail chain, Raymond James analysts say in a research note. "We do not believe the update should be viewed as an indication of a higher likelihood from the FTC of allowing the deal to close, but more so as Tempur Sealy putting the necessary preparations in place to close the deal if the FTC approves," they write. In July, the FTC voted to block the acquisition, saying it would allow Tempur Sealy to suppress competition and raise prices. Regardless of the outcome, Raymond James maintains its view that Tempur Sealy "offers a favorable investment case for the medium term," citing its dominating position within the U.S. market and the positive effect of lower interest rates on housing turnover, set to help mattress demand over time. (connor.hart@wsj.com; @connorhart22)
(END) Dow Jones Newswires
September 23, 2024 17:42 ET (21:42 GMT)
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