FTC Approves EnCap’s $1.5 Billion Takeover of EP Energy with Condition

The FTC said EnCap’s takeover of EP Energy without the sale of its assets in Utah would have left just three significant producers that sell Uinta Basin crude oil to refiners in Salt Lake City, and led to higher prices for consumers.

Reuters

The U.S. Federal Trade Commission (FTC) on March 25 said it would require EnCap Investments LP to sell EP Energy’s entire Utah oil business to resolve allegations its planned merger would lead to higher prices.

Reuters had previously reported that EP was exploring a sale of oil-producing acreage in Utah in hopes of averting an FTC challenge to its agreed $1.5 billion takeover by private equity firm EnCap.

The FTC said the deal without the sale of the assets in Utah would have left just three significant producers that sell Uinta Basin crude oil to refiners in Salt Lake City, and led to higher prices for consumers.

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