What Happened

• DTE and Enbridge’s natural gas pipeline joint venture, Nexus, agreed to purchase the Generation Pipeline (Generation).
• Generation was owned by a group of sellers including North Coast Gas Transmission (North Coast).
• Generation’s primary asset is a 23-mile pipeline that serves the Toledo, Ohio, area.
• North Coast continues to own a competing pipeline near Toledo, Ohio.
• The purchase agreement contained a non-compete provision that prevented the sellers, including North Coast, from competing in three counties surrounding Toledo, Ohio, for three years.
• After an investigation, the FTC announced a settlement with DTE, Enbridge and Nexus to remedy the FTC’s concern with the non-compete provision by requiring the purchase agreement to be amended to remove the non-compete provision.
• The FTC Commissioners were unanimous in their conclusion that the challenged non-compete was unlawfully broad, though several Commissioners issued concurring statements regarding the import of the FTC’s action in this case.

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