Case Description
As part of a negotiated consent decree, the State of Florida and the Federal Trade Commission sought to enjoin the proposed merger between El Paso Energy Corp. (El Paso) and Coastal Corp. (Coastal)., alleging that the acquisition of Coastal by El Paso would substantially impair competition and would potentially forestall new competition for the transportation of natural gas in the state. It was also alleged that the merger would effectively result in higher costs of electricity and natural gas. In order to consummate their $16 billion merger, El Paso agreed to divest its interests in eleven natural gas pipeline systems, restoring competition to pre-merger levels and assuring future competition for natural gas transportation in Florida.
