FTC Indicates It Will OK Merger of Fidelity National, Chicago Title

Federal regulators appear ready to approve the pending merger of Fidelity National Financial Inc. and Chicago Title Corp. with some minor conditions.

The preliminary word from officials at the Federal Trade Commission is that the merger may proceed as long as Irvine-based Fidelity sells six small title plants in California or agrees to make those facilities accessible to competitors, according to William Foley, chairman of Fidelity. The plants are in Central and Northern California, and the title insurer would have five years to make the changes, he said.

A green light from the FTC would remove one of the key obstacles remaining to the deal. Fidelity hopes to have shareholders vote on the deal early next year.

Meanwhile, Fidelity is already making room for Chicago operations and employees at its Santa Barbara office.

Fidelity has leased a 60,000-square-foot building, currently under construction in Santa Barbara, which will allow the company to consolidate several corporate functions. The new facility will house Fidelity’s executive offices, human resources, agency processing and corporate finance.

“We don’t have enough space where we are,” Foley said. “We have two secretaries in every cubicle. We’re in serious trouble up here.”

But Fidelity’s Orange County operations will be largely unaffected, Foley said. Only about five Orange County jobs are expected to relocate to Santa Barbara once the new building is completed next spring.