UPDATE 1-China's Suning to buy stake in Japan's Laox-Xinhua

* Chinese retailer buying 27.36 pct stake-Xinhua

* Stake would make Suning biggest shareholder-Xinhua

* Suning said last week in tie-up talks with Laox

(Adds more detail, background)

BEIJING, June 24 (Reuters) - Chinese retailer Suning Appliance Co (002024.SZ) said on Wednesday it would buy a 27.36 percent stake in Japanese electronics retailer Laox (8202.T), the official Chinese news agency Xinhua reported.

Xinhua said the Chinese firm would become the biggest shareholder in Laox, but gave no further details.

A Suning official had said last week that it was in tie-up talks with Laox, as Chinese firms look for bargains in their bid to expand abroad. [ID:nBNG365996]

Once among Japan's leading consumer electronics retailers, Laox has been losing market share to bigger rivals like industry leader Yamada Denki Co Ltd (9831.T).

At its peak, in the business year to March 2001, Laox had revenues of 214 billion yen ($2.2 billion) and ran about 120 stores nationwide. The company has forecast a ninth straight year of net loss and revenue of 13.2 billion yen for the current financial year ending next March.

Suning hopes the deal will improve business practices such as pricing policies and customer services, Japan's Nikkei business daily reported last week.

It also aims to use the expertise gleaned from operating in the highly competitive Japanese consumer electronics retail market to fuel further business growth.

Earlier this week rival sector retailer China GOME Electrical Appliances (0493.HK) said U.S. private equity firm Bain Capital has agreed to take up to a quarter of its shares under a plan to raise $418 million or more. (Reporting by Jason Subler and Emma Graham-Harrison; Editing by Jon Loades-Carter)