$1.2-Billlion Merger of Fidelity, Chicago Title Gets FTC’s OK

The Federal Trade Commission has approved the proposed merger of Irvine-based Fidelity National Financial Inc. and Chicago Title Corp., a $1.2-billion deal that would create the nation’s largest title insurance company, Fidelity said Tuesday.

The companies will be required to divest title plants in five Northern California counties. One of the companies also will have to relinquish voting rights or an interest in a joint title plant in another county.

The combined company, which will take Fidelity National Financial’s name, will have about 1,000 offices across the country.

The deal--expected to close in the first quarter--is subject to shareholder approval next month.

But the recent decline in Fidelity’s stock price could force the companies to renegotiate Fidelity’s $52-a-share offer for Chicago.

Terms could be renegotiated if Fidelity’s stock price remains below $15 a share. Under the original agreement, Fidelity would acquire Chicago Title for about $1.2 billion in about equal amounts of cash and stock.

Fidelity’s stock on Tuesday fell 56 cents a share to $13.25, a 52-week low. Chicago Title’s shares closed at $46.44, up 56 cents a share.