Kinder Morgan announced Tuesday it has received approval for its pending acquisition of El Paso Corporation from the Federal Trade Commission subject to the previously announced divestiture of certain Kinder Morgan Energy Partners, L.P. assets. The FTC also terminated the Hart-Scott-Rodino Act waiting period, clearing the way for the companies to close the transaction as anticipated in late May.
"We are pleased to receive FTC approval, and we look forward to becoming the largest midstream and the fourth largest energy company in North America when the transaction is completed," said Kinder Morgan Chairman and CEO Richard D. Kinder.
In March, Kinder Morgan reached a verbal agreement with the FTC to sell Kinder Morgan Interstate Gas Transmission, Trailblazer Pipeline Company, its Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, and the company's 50 percent interest in the Rockies Express Pipeline. The FTC order allows the company six months to sell the assets. As previously announced, KMI plans to offer (drop down) El Paso assets to KMP to replace the divested assets.
A tentative deadline for El Paso shareholders to elect the form of consideration that they wish to receive has been set for 5:00 p.m., New York City time, on May 23, 2012.
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