UPDATE 2-Sanyo to sell part of battery business to FDK

* To sell non-auto nickel-metal hydride battery ops to FDK

* Deal aimed at winning approval on takeover by Panasonic

* Shares close down 2.7 pct vs 1.9 pct fall in sector index (Adds confirmation, closing share price)

TOKYO, Oct 28 (Reuters) - Japan's Sanyo Electric Co 6764.T said it will sell part of its battery operations to FDK Corp (6955.T), a Fujitsu Ltd (6702.T) unit, for 6.4 billion yen ($70 million) to satisfy antitrust regulators ahead of its planned takeover by Panasonic Corp (6752.T).

Sanyo, the world's largest maker of rechargeable batteries, plans to sell its operations to make nickel-metal hydride batteries for consumer electronics and power tools to FDK, while keeping its auto-use nickel-metal hydride battery business.

Other businesses that will be sold to FDK, an electronic components maker, include parts of its operations for coin cell and cylindrical batteries, Sanyo said.

Panasonic said last December it would spend at least 400 billion yen to take control of Sanyo, creating a powerhouse in the fast-growing market for batteries for hybrid cars.

Panasonic last month gained approval from European Union antitrust regulators to acquire Sanyo on condition that it shed some units. Sanyo is still seeking approval from anti-monopoly regulators in China and the United States.

Sanyo will likely book a 9 billion yen loss for the deal, but said the negative impact has already been factored into its latest earnings outlook.

The announcement comes as little surprise since a source close to the matter said earlier on Wednesday that Sanyo plans to sell part of its battery operations.

Following the comment by the source but prior to the official announcement, shares in Sanyo closed down 2.7 percent at 214 yen, underperforming the Tokyo stock market's electrical machinery index .IELEC.T, which lost 1.9 percent. (Reporting by Kiyoshi Takenaka; Editing by Michael Watson)