FTC And DOJ Continue Antitrust Enforcement Efforts Against Alleged Board Interlocks

On August 16, the Federal Trade Commission (FTC) and Department of Justice (DOJ) announced two new enforcement actions targeting alleged interlocking directorates.

For the FTC, this action is the first formal Clayton Act Section 8 enforcement in nearly 40 years.¹ The FTC announced a settlement resolving interlocking directorate concerns associated with a proposed transaction between Houston-based private equity firm Quantum Energy Partners (Quantum), whose holdings include Appalachian natural gas producer Tug Hill Corp. and pipeline operator Xcl Midstream, and natural gas producer EQT Corporation (EQT) based in Pittsburgh. The FTC alleged that the transaction — which would have granted Quantum the right to nominate its CEO or another Quantum designee for election as a member of the EQT Board of Directors — violated Section 8. As discussed in greater detail below, EQT and Quantum agreed to a variety of far-reaching commitments to resolve the FTCs concerns.