Exploration firm Petroceltic said today its merger with Melrose Resources has been approved by Bulgarian authorities.

The company said the Bulgarian Commission on Protection of Competition approved the deal without conditions, and all regulatory conditions of the merger have 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, Italy and Kurdistan, 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 in the new company, holding 54 cent, while Melrose will have a 46 per cent share.