The US FTC requires the parties in a sale of natural gas pipeline to revise their agreement in order to eliminate a non-compete covenant deemed unreasonably limited in scope (Nexus Gas Transmission / DTE Energy)

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In a September 13, 2019 enforcement action, the Federal Trade Commission required the parties in a sale of a natural gas pipeline to revise their agreement to eliminate a non-compete covenant that the FTC determined was not reasonably limited in scope. The FTC did not express any antitrust concerns about the underlying transaction, but still prohibited the parties from consummating the deal until the purchase agreement was amended. The FTC’s enforcement action is a reminder that the antitrust agencies will closely scrutinize non-competes. These investigations can delay the closing of M&A transactions, even in deals that otherwise present no significant

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Authors

  • Fried Frank Harris Shriver & Jacobson (New York)
  • Fried Frank Harris Shriver & Jacobson (New York)
  • Fried Frank Harris Shriver & Jacobson (New York)

Quotation

Nathaniel L. Asker, Aleksandr B.  Livshits, John Todd Garcia Jr., The US FTC requires the parties in a sale of natural gas pipeline to revise their agreement in order to eliminate a non-compete covenant deemed unreasonably limited in scope (Nexus Gas Transmission / DTE Energy), 13 September 2019, e-Competitions September 2019, Art. N° 96868

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