Court Opinion

ID: 9448249
Source: CourtListenerOpinion
Date Created: 2023-08-03 23:28:24.177298+00
Date Added: 2024-06-11T17:31:20.752886
License: Public Domain

FAHY, Circuit Judge,
dissenting: Because of the matter now to be briefly discussed I am not able to agree entirely with the opinion of my Brother Pretty-man, with most of which, however, I do agree.
The acquisition by El Paso Natural Gas Company of some 99 per cent of the stock of Pacific Northwest Pipeline Corporation led the United States to prepare to file suit against El Paso attacking the acquisition of the stock as a violation of section 7 of the Clayton Act. The suit was later filed in the District Court of the United States for the District of Utah. When the responsible officials of El Paso learned of the plans of the United States to file suit, the corporation, by using the very stock control being questioned by the United States, acquired Pacific Northwest’s assets and facilities and then applied to the Commission for approval of this merger under section 7(c) of the Natural Gas Act.1 The approval of the Commission was given in the order under review.
Assuming that the Commission has authority under its statute to immunize an asset merger from the antitrust laws of the United States, particularly section 7 of the Clayton Act, it is my opinion that the order approving the instant merger should not be affirmed. I am of this opinion because if the stock acquisition attacked in the suit filed by the United States is invalid under the antitrust laws the acquisition by El Paso of Pacific Northwest’s facilities, constituting the merger which was approved, was contrary to public policy because accomplished by stock control obtained in violation of the antitrust laws. Clearly this would be a relevant consideration in determining whether the merger, though otherwise serving the public convenience and necessity, should be found to do so. If not invalid as contrary to public policy at least such a merger should be reconsidered in event the antitrust suit results favorably to the United States. This is not simply a matter of whether the public convenience and necessity would be served by the merger upon consideration of other relevant factors, including the general policy of the antitrust laws; it is a matter of whether a merger, accomplished by a partieu*356lar illegal acquisition of stock, can be approved consistently with sound public policy or be said to serve the public convenience and necessity.
For the reasons above stated I agree with the position of the United States as amicus curiae that the decision of the Commission should be vacated and the cause remanded with instructions that the Commission either deny the application for approval of the merger or await the outcome of the antitrust litigation.

. If it is not clear, as I think it is, that the acquisition of the assets of Pacific Northwest by El Paso was a consequence of the action taken by the United States under the antitrust laws, it is certain that the contrary also is not clear, and the truth of the matter should be determined,