Melrose Resources Petroceltic merger clears last hurdle

Oil exploration field in Egypt The oil firms have said that the enlarged group will be well capitalised

A proposed merger between Edinburgh oil firm Melrose Resources and Dublin-based Petroceltic International has cleared its final hurdle.

The High Court of Justice in England and Wales has sanctioned a scheme of arrangement between the two firms.

It follows approval of the merger by regulators and Melrose shareholders.

Melrose's listing on the stock exchange will be cancelled on Thursday, when the enlarged share capital of Petroceltic is expected to be readmitted.

The new company is to be called Petroceltic with headquarters in Ireland.

The merger will give the combined oil group a bigger presence in North Africa, the Mediterranean and Black Sea, where both already operate.

Petroceltic's shareholders will hold 54% of the new company and Melrose shareholders the rest.

The two companies have said that the enlarged group would be well capitalised and would have a £190m loan facility.

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