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FTC issues final order approving KMI purchase of El Paso Corp.

The US Federal Trade Commission ordered Kinder Morgan Inc. to sell 3 Rocky Mountain natural gas pipelines and associated assets as part of the FTC’s order approving KMI’s $38 billion purchase of El Paso Corp.

The commission’s June 14 order specified KMI would sell the assets to a purchaser, to be approved by the FTC, within 180 days of the acquisition’s closure.

FTC said the required sale of the pipelines resolves anticompetitive claims regarding the KM-El Paso transaction.

The order also required KMI to grant the purchaser the opportunity to recruit and hire any KM Pipeline employee under specified conditions.

Previously, KM agreed to divest Kinder Morgan Interstate Transmission Co., Trailblazer Pipeline Co., the Casper-Douglas natural gas processing plant, the West Frenchie Draw treating facilities, and a 50% interest in the Rockies Express Pipeline to win FTC approval of the El Paso acquisition.

KM completed the El Paso cash and stock acquisition May 25 after selling that company’s exploration and production business for $7.15 billion to affiliates of Apollo Global Management LLC and others.

Upon closing, KM said it would offer other assets to Kinder Morgan Partners to replace the divested holdings.

The KM-El Paso transaction was announced last year (OGJ Online, Oct. 24, 2011).

Contact Nick Snow at nicks@pennwell.com

 


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