Federal regulators say Tempur Sealy's acquisition of Mattress Firm would raise prices for "millions of consumers."

Houston-based Mattress Firm might have had sweet dreams of a multibillion-dollar deal with mattress supplier Tempur Sealy. But then the Federal Trade Commission moved to block Tempur Sealy's proposed $4 billion acquisition of Mattress Firm in an attempt to prevent the two from raising prices and quashing competitors.

The commission said the acquisition could hike prices for consumers, take out competitors and cut jobs at rival mattress companies.