Riyadh – Mubasher: The shareholders of Bawan Company has announced that two of its subsidiaries signed a SAR 17 million ($4.53 million) merger agreement.

United Transformers Electric Company (UTEC) and United Technology Of Electric Substations & Switchgears Company (USSG) will be merged to improve the operational efficiency and productivity of both companies, according to a bourse statement released on Wednesday.

The financial impact of the deal is expected to be positive in general, which may reflect on the financial results for the fourth quarter of 2019, Bawan stated.

Bawan holds 85.5% stakes in each of UTEC and USSG.