The new business will serve nearly five million customers

The company plans to bring together Midlands Electricity and East Midlands Electricity under the name Central Networks.

Powergen has already indicated there are likely to be redundancies at the firms, which together employ about 5,000 people.

It has not yet said whether it will close any depots or offices as part of the �1.14bn takeover deal.

German-owned company

The Coventry-based company said it planned to enter a consultation period with staff and unions as it announced completion of the deal on Friday.

A spokesman said: "There are obviously going to be areas in the business where there is overlap and, as we said when we first announced the deal, there are likely to be redundancies."

Powergen, which is owned by German energy group Eon, said last October it was buying Midlands Electricity from Aquila and First Energy of the United States.

The new business will be the UK's second largest electricity network operation, serving nearly five million customers across central England, Powergen said.

'Swifter service'

Powergen indicated that one of the two merged businesses' head offices is likely to close as the company eliminates duplication.

It said the combined operation would benefit from greater investment than at present, resulting in a "better, swifter service to customers".

Bob Taylor, Powergen's managing director of distribution, said the completion of the deal represented great news "for all electricity customers across central England".

Midlands Electricity employs 1,964 staff in its distribution business, 1,194 staff in its metering operation and 533 staff in its contracting business activities.

It distributes electricity to households and businesses across Shropshire, Staffordshire, the West Midlands, Herefordshire, Worcestershire and Gloucestershire.

East Midlands Electricity is based at Castle Donington in Leicestershire and runs about 67,000 kilometres of overhead and underground lines.