Spanish power firm makes US move

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Spanish power firm Iberdrola is expanding into the US by buying Energy East for $4.5bn (3.3bn euros; £2.25bn).

The deal, Iberdrola's first US venture, will give it access to more than three million customers concentrated in New York and New England.

Iberdrola has grown outside its home market in recent times, buying British business Scottish Power in 2006.

Iberdrola said the latest deal would "consolidate its position" as one of the world's top energy firms.

International expansion

"The combination with Energy East fits with the philosophy of our strategic plan, will serve to enhance the international expansion we initiated several years ago in markets with stable growth," said Ignacio Galan, Iberdrola's chairman and chief executive.

The Spanish firm is to pay $28.50 for each Energy East share.

Energy East supplies customers in New York, Massachusetts, Connecticut and Maine.

The deal has to be approved by Energy East investors and federal regulators.