Irish oil and gas firm Petroceltic International Plc agreed to buy Melrose Resources Plc for about 165 million pounds. Together with a special dividend for Melrose shareholders, the merger value will come to around 170.4 million pounds.

Following the merger, Petroceltic shareholders will hold 54 percent of the enlarged company and the remaining by Melrose. Petroceltic shares dropped about 6 percent in London.

The companies believe that the merger will create a regionally focused North Africa, Mediterranean and Black Sea independent oil and gas company.

Tags: Melrose Resources plc, Petroceltic International plc