Shareholders approve merger of Romanian Electrica’s power distribution subsidiaries

The shareholders of major Romanian utility holding Electrica approved the merger of the group’s electricity distribution subsidiaries.

Thus, the three power distribution companies in Electrica group (SDEE Transilvania Nord, SDEE Transilvania Sud, SDEE Muntenia Nord) will merge into a single entity that will be named Distributie Energie Electrica Romania (DEER). The merger will become effective as of January 1, 2021, Economica.net reported.

The merger aims to improve and streamline the operational performance, service quality and costs for final consumers. Long term, the group aims to consolidate and develop its business model and prepare its distribution networks for the challenges of the energy transition.

In 2019, Electrica’s three subsidiaries distributed approximately 17.7 TWh of electricity, which represents approximately 40% of the total electricity distributed nationwide to end users.

Electrica’s shareholders also approved the merger of the two service companies within the group.

Electrica group’s investment plans for this year amount to RON 600 million (EUR 125 mln). The group serves 3.8 million clients in Romania.

Electrica group listed its shares on the Bucharest Stock Exchange and London Stock Exchange in July 2014. The group currently has a market capitalization of EUR 800 mln. Its biggest shareholder is the Romanian state, which holds 48.8% of the total shares.

(Photo source: the company)