Editing Enron (section)

===Pre-merger origins (1925–1985)===
====InterNorth====
One of Enron's primary predecessors was [[InterNorth]], which was formed in 1930, in [[Omaha, Nebraska]], just a few months after [[Wall Street Crash of 1929|Black Tuesday]]. The low cost of [[natural gas]] and the cheap supply of labor during the [[Great Depression]] helped to fuel the company's early beginnings, doubling in size by 1932. Over the next 50 years, Northern expanded even more as it acquired many energy companies. It was reorganized in 1979 as the main subsidiary of a [[holding company]], InterNorth, a diversified energy and energy-related products firm. Although most of the acquisitions conducted were successful, some ended poorly. InterNorth competed with [[Cooper Industries]] unsuccessfully over a hostile takeover of [[Crouse-Hinds Company]], an electrical products manufacturer. Cooper and InterNorth feuded in numerous suits during the takeover that were eventually settled after the transaction was completed. The subsidiary Northern Natural Gas operated the largest pipeline company in North America. By the 1980s, InterNorth became a major force for natural gas production, transmission, and marketing as well as for [[natural gas liquids]], and was an innovator in the [[plastics industry]].<ref name=":3">{{cite web|url=http://www.referenceforbusiness.com/history2/57/Enron-Corporation.html|title=Enron Corporation – Company Profile, Information, Business Description, History, Background Information on Enron Corporation|website=referenceforbusiness.com|access-date=July 13, 2016}}</ref> In 1983, InterNorth merged with the Belco Petroleum Company, a [[Fortune 500]] oil exploration and development company founded by [[Arthur Belfer]].<ref name=Funding>{{cite web|url=http://www.fundinguniverse.com/company-histories/belco-oil-gas-corp-history/|title=Funding Universe: History of Belco Oil & Gas Corp|access-date=September 21, 2017}}</ref>

====Houston Natural Gas====
The [[Houston Natural Gas]] (HNG) corporation was initially formed from the Houston Oil Co. in 1925 to provide gas to customers in the Houston market through the building of [[Pipeline transport|gas pipelines]]. Under the leadership of CEO Robert Herring from 1967 to 1981, the company took advantage of the unregulated Texas natural gas market and the commodity surge in the early 1970s to become a dominant force in the energy industry. Toward the end of the 1970s, HNG's luck began to run out with rising gas prices forcing clients to switch to oil. In addition, with the passing of the [[Natural Gas Policy Act of 1978]], the Texas market was less profitable and as a result, HNG's profits fell. After Herring died in 1981, M.D. Matthews briefly took over as CEO in a 3-year stint with initial success, but ultimately, a big dip in earnings led to his exit. In 1984, [[Kenneth Lay]] succeeded Matthews and inherited the troubled conglomerate.<ref>{{cite book|title=Edison to Enron: Energy Markets and Political Strategies|last=Bradley|first=Robert L.|publisher=Scrivener|year=2011|isbn=978-0470917367|pages=371–372, 464–467}}</ref>

====Merger====
With its conservative success, InterNorth became a target of corporate takeovers, the most prominent originating with [[Irwin L. Jacobs|Irwin Jacobs.]]<ref name=":0">{{Cite book|title=A Financial History of Modern U.S. Corporate Scandals from Enron to Reform|last=Markham|first=Jerry W.|publisher=Routledge|year=2006|isbn=0765615835|via=Credo Reference}}</ref> InterNorth CEO Sam Segnar sought a friendly merger with HNG. In May 1985, Internorth acquired HNG for $2.3 billion, 40% higher than the current market price, and on July 16, 1985, the two entities voted to merge.<ref name=":1">{{Cite web|url=http://www.sjsu.edu/faculty/watkins/enron.htm|title=The Rise and Fall of Enron|last=Watkins|first=Thayer|website=San Jose State University|access-date=July 13, 2016|archive-date=August 5, 2020|archive-url=https://web.archive.org/web/20200805181220/https://www.sjsu.edu/faculty/watkins/enron.htm|url-status=dead}}</ref> The combined assets of the two companies created the second largest gas pipeline system in the US at that time.<ref name=":2">{{Cite web|url=https://tshaonline.org/handbook/online/articles/doe08|title=Enron Corporation|last=Frontain|first=Michael|date=June 12, 2010|website=Texas State Historical Association|access-date=July 13, 2016}}</ref> Internorth's north–south pipelines that served Iowa and Minnesota complemented HNG's Florida and California east-west pipelines well.<ref name=":1" />