The Federal Trade Commission (FTC) has denied a petition to reopen and set aside a final consent order related to a $5.2 billion cash-and-stock transaction between Quantum Energy Partners, a private equity firm, and EQT Corporation, a natural gas producer.
After reviewing public comments, the FTC concluded that Quantum Energy Partners did not present any new information or changes that would justify reopening the order. The consent order was initially established to address antitrust concerns about the deal, which would have made Quantum one of EQT’s largest shareholders and given it representation on EQT’s board of directors. Both companies compete directly in producing and selling natural gas in the Appalachian Basin, recognized as the country’s largest natural gas-producing region.
The FTC also expressed concern about an existing joint venture between EQT and Quantum involving the purchase of mineral rights in the Appalachian Basin. The agency alleged this arrangement could facilitate anticompetitive information sharing and negatively impact competition for acquiring mineral rights.
According to the final 2023 consent order, Quantum is barred from holding a seat on EQT’s board to prevent interlocking directorates. The order also requires Quantum to divest its shares in EQT, restricts anticompetitive information exchange, unwinds their joint venture, and includes additional measures intended to protect competition.
Although Quantum has taken steps toward compliance with these requirements, the FTC stated that obligations under the consent order remain unmet. The agency noted that “Quantum has not met its burden of showing that a change of fact requires reopening the order.” It further stated that “Quantum has failed to establish it would be in the public interest to set aside the order.”
The decision by the Commission was unanimous with a 3-0 vote.
The FTC continues its work promoting competition while protecting consumers through education and enforcement actions.
