Monday | August 08, 2022 |
Market Status: CLOSED

Market News


Completion of the merger process of the distribution companies

Release Date: 1/4/2021 8:30:08 AM

IRIS Code: 2D57C


Electrica has successfully completed the merger process of the three electricity distribution companies within Electrica Group

Electrica announces the successful completion of the merger by absorption of the three electricity distribution companies within the Group, which, starting with 1 January 2021, became Distributie Energie Electrica Romania S.A. (DEER).

The merger by absorption of the electricity distribution companies within the Electrica Group was approved in principle by the Board of Directors of Electrica S.A. in the meeting dated 27 May 2020, the decision being an important step in the implementation plan of the Group Strategy for the period 2019-2023.

Through the merger of Societatea de Distributie a Energiei Electrice (SDEE) Transilvania Nord S.A, SDEE Transilvania Sud S.A. and SDEE Muntenia Nord S.A., the new company Distributie Energie Electrica Romania becomes the most important national operator of electricity distribution networks. It will operate 198,988 km of electric lines in 18 counties, from three geographical areas of the country, representing 40.7% of the Romanian territory, and will serve over 3.8 million users. Thus, Electrica Group has taken an important step in adapting to consumer’s requirements, offering them services to cover their increasingly diverse needs.

Statement of Corina Popescu, CEO of Electrica S.A.: “By implementing the merger of the three distribution companies within the Group, medium and long-term benefits will be obtained for all stakeholders. It is a major project which will allow us to streamline costs, while accelerating the digitization of major business processes, as well as to improve operational performance in order to increase the quality of services provided”.

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

At regional level, there will be eighteen branches, with headquarters in: Cluj-Napoca, Oradea, Baia Mare, Satu Mare, Bistrita, Zalau, Brasov, Sibiu, Alba Iulia, Targu Mures, Miercurea Ciuc, Sfantu Gheorghe, Ploiesti, Braila, Galati, Buzau, Targoviste and Focsani.

The main objectives of the strategy defined for the distribution segment consider optimizations on three dimensions: operational performance, quality of services and optimization of costs to the final consumer. The long-term strategic directions, focused on the business model’s development, corroborated with the preparation of the distribution networks to face the challenges of the energy transition, are added to these.

Since 2014 until now, Electrica Group has become the largest investor in the upgrading and retrofitting of electricity distribution networks, with a total of RON 4.39 billion invested.


Chief Executive Officer                                                                     

Georgeta Corina Popescu                                      




Information provided by IRIS, the news platform of the Bucharest Stock Exchange.


Bucharest Stock Exchange ("BVB") is not responsible for the content of this News item. Issuers whose financial instruments are traded on markets operated by BVB are required to report in accordance with current legal and regulatory provisions. BVB publishes these Reports as market administrator, appointed by ASF. When, for investors’ information, Reports are published, either signed by different persons, or with conflicting information, legal liability lies fully with the signatories. BVB disclaims any obligation or responsibility towards issuers or third parties, regarding the reality, completeness and accuracy of information provided by them and distributed by BVB. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

©2016 Bucharest Stock Exchange. All rights reserved