Exploration firm Petroceltic said its merger with Melrose Resources had been approved by Bulgarian authorities. The company said the Bulgarian Commission on Protection of Competition approved the deal without conditions and that all regulatory conditions of the merger had been satisfied or waived.

The deal, which was announced in August, will create a diversified yet regionally focused company, according to Petroceltic. The company has licences in Algeria and Italy, while Melrose is focused on Egypt, Bulgaria, Romania and Turkey.

The combined group, which will retain the Petroceltic name, will be headquartered in Dublin. Petroceltic shareholders will take a controlling stake, holding 54 cent, while Melrose will have a 46 per cent share.