Chevron's Unocal acquisition gets OK from US Federal Trade Commission

US oil giant Chevron Corp.'s proposed 18 billion dollar acquisition of Unocal Corp. was given the green light from the Federal Trade Commission after two consent orders were agreed upon, agencies reported.

Under terms of the orders, Unocal will stop enforcing certain reformulated gasoline patents and will release them to the public by the close of the deal.

"The settlement provides the full relief sought in the monopolization case and resolves the only competitive issue with the proposed merger," the FTC said in a statement.

"With the settlement, consumers will benefit immediately from the elimination of royalty payments on the Union Oil patents, and potential merger efficiencies could result in additional savings at the pump."

The deal for Unocal, one of the largest independent oil and gas exploration firms, will increase Chevron's production and reserves by about 15 percent. It particularly expands Chevron assets in the Asia-Pacific region.

The combined firm would become the top oil and gas producer in Thailand and bring in extensive oil and gas producing operations in Indonesia.

The acquisition will also give Chevron the second-largest interest in the Azerbaijan International Operating Company oil producing operations, broadening its operations in the Caspian region.(*)