BUCHAREST (Romania), January 4 (SeeNews) – Romanian electricity supplier and distributor Electrica [BSE:EL] announced Monday that it had finalized the merger by absorption of three electricity distribution companies within the Electrica group.

Thanks to the merger of the three companies – Transilvania Nord, Transilvania Sud and Muntenia Nord, the new company Distributie Energie Electrica Romania (DEER) becomes the largest national operator of electricity distribution networks, Electrica said in a statement filed with Bucharest Stock Exchange, BVB.

DEER will operate 198,988 km of power lines in 18 counties, from three geographic areas of the country, representing 40.7% of the Romanian territory, and will serve more than 3.8 million users.

“By implementing the merger of the three distribution companies within the Group, medium and long-term benefits will be obtained for all stakeholders. This is a major project that will allow us to rationalize costs, while accelerating the digitization of major business processes, as well as improving operational performance in order to increase the quality of the services provided ”, said Corina Popescu, CEO of Electrica SA.

DEER will be responsible for the distribution of electricity in the counties of Cluj, Maramures, Satu Mare, Salaj, Bihor, Bistrita-Nasaud, Brasov, Alba, Sibiu, Mures, Harghita, Covasna, Prahova, Buzau, Dambovita, Braila, Galati and Vrancea.

Since 2014, Electrica Group has become the largest investor in the modernization and upgrading of electricity distribution networks, with a total of 4.39 billion lei ($ 1.1 billion / € 901.5 million ) invested.

The net profit of Electrica, the parent company of the group, jumped to 396 million lei in the first nine months of 2020, from 161 million lei in the same period of 2019, partly thanks to higher electricity distribution tariffs and increased retail prices. Electrica’s operating income reached 4.895 billion lei from January to September 2020, compared to 4.723 billion lei in the same period of 2019.

Electrica’s shares, in which the Romanian state has a 48.8% stake, are listed on the BVB and the London Stock Exchange.

Electrica shares changed hands up 0.40% to 12.6 Lei on Monday at 9:28 am CET on BVB.

(1 euro = 4.8694 lei)