Spanish energy giant Iberdrola has made its first foray into the US market in a €3.4 billion (£2.29 billion) deal.
The move for Energy East, which operates in New York, Maine, Massachusetts, New Hampshire and Connecticut, will see the Bilbao-based firm become one of the largest electricity providers in the world.
As part of the deal Iberdrola will assume €3 billion (£2.01 billion) of the American firm's debt.
Iberdrola chairman Ignacio Galan said the transaction, still subject to Energy East shareholder approval, "enhances our international expansion and consolidates our position as one of the world's leading electricity companies".
The acquisition for the US utility represents a premium of 20.2 per cent on the average share price of the company over the past month.
"The United States represents an important opportunity for growth, and the acquisition of Energy East is a step forward in our strategy of building an Atlantic platform," Mr Galan went on to say.
"The acquisition of Energy East will allow Iberdrola to strengthen its commitment to shareholders, improving group results, dividend and profitability.
"It will also enhance its commitment to customers, through improved quality of supply, and to society, contributing to sustainable development thanks to our world leadership in renewable energy and to increased investments devoted to reducing emissions."
Today's deal is not the first time Iberdrola has moved for firms outside Spain; in 2006 it completed its takeover of Scottish Power.
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