Shareholders in Scottish oil firm Melrose Resources yesterday agreed a £165million take over bid by Irish firm Petroceltic International.
Melrose said it expected the trading of its shares on the Stock Exchange to be suspended by 8am on October 8.
Petroceltic said last month it wanted to buy the Edinburgh business to boost its presence in north Africa and the Black Sea.
The acquisition, which was approved by the boards of both operators, would create a business with 441million barrels of proved, probable and contingent reserves.
While Melrose is focused on north Africa – including Egypt – and eastern Europe, Petroceltic operates in Algeria, Italy and the autonomous Kurdistan region of Iraq.
Petroceltic chief executive Brian O’Cathain – who will remain head of the new company should the acquisition go through – said when announcing the deal that it was “totally in line with our strategy to expand in the Middle East, north Africa and in the Black Sea”.
Melrose chairman Robert Adair said the deal would create a competitive exploration and production company.
Mr Adair said: “The enlarged group will have a strong, highly-experienced management team with a good blend of operating skills to maximise the value of these assets and pursue additional business development opportunities.”