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UPDATE 2-Nidec to buy motor business from Sanyo - sources

Published 12/08/2010, 09:10 PM
Updated 12/08/2010, 09:12 PM

* Nidec to pay about $83 million for business- Nikkei

* Follows Nidec's purchase of 2 businesses from Emerson

* Buyout comes as Panasonic completes Sanyo takeover

* Shares in Nidec slip, Panasonic and Sanyo flat (Recasts and adds dateline, details and background)

TOKYO, Dec 9 (Reuters) - Japanese motor maker Nidec Corp plans to buy Sanyo Electric's mini-precision motor business, two sources with knowledge of the matter said on Thursday, in a deal reportedly worth $83 million.

It would mark the latest in a string of acquisitions by Nidec, which this year agreed to buy two of Emerson Electric's motors businesses and is aiming to lift sales by 70 percent to 1 trillion yen ($11.9 billion) in three years.

Nidec and Sanyo will announce the deal on Thursday, said the sources, who were not authorised to speak publicly about the deal.

Spokesmen for Sanyo and Nidec declined to comment.

The Nikkei business daily reported earlier that Nidec would pay around 7 billion yen ($83 million) for the business, aiming to boost its global share in the market for vibrating motors used in mobile phones.

The move comes as Panasonic Corp completes its buyout of former rival Sanyo in a bid to take advantage of its environmental technologies, such as rechargeable batteries and solar panels. That deal is set to be completed by April 2011.

In June Sanyo said it would sell its loss-making semiconductor unit to Arizona-based ON Semiconductor for about 33 billion yen.

Shares in Sanyo and Panasonic were flat following Thursday's news, while Nidec fell 0.7 percent to 8,780 yen. The Nikkei average was up 0.2 percent. (Reporting by Reiji Murai; Writing by Mariko Katsumura and Isabel Reynolds; Editing by Nathan Layne)

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