FTC Approves Final Consent Order Allowing Enbridge and Spectra Merger

The Federal Trade Commission has approved the merger between Enbridge and Spectra, following the parties' acceptance of certain terms designed to preserve competition between natural gas pipelines in the Gulf of Mexico. The FTC's action highlights the continued focus on mergers in the midstream and upstream energy sector and the remedies agreed upon illustrate ways to preserve competition through means other than divestitures and that are specifically tailored to the assets at issue.

On March 24, 2017, the FTC issued its Final Order allowing the merger between Enbridge, Inc. and Spectra Energy Corp to proceed. The Final Order follows a 30-day notice-and-comment period after the FTC entered an agreement with Enbridge and Spectra to resolve the FTC's concerns. Pursuant to the agreement, Enbridge will take precautionary measures to preserve competition among natural gas pipelines servicing the Gulf of Mexico. These measures include firewalls that will limit Enbridge's