China's Suning says has right to lift stake in Laox

SHANGHAI, June 26 (Reuters) - Chinese electronics retailer Suning Appliance Co Ltd, which this week agreed to buy a controlling 27.36 percent stake in Japan's Laox (8202.T), on Friday said it has the right to increase its stake to 29.33 percent.

Suning has the option to buy an additional 10.66 million new shares in Laox for about 15.27 million yuan ($2.23 million) between January 15, 2010 and January 14, 2013, China's biggest appliance retailer by market value said in a statement to the Shenzhen Stock Exchange.

On Wednesday, Suning it would pay 800 million yen ($8.39 million) to buy 27.36 percent of Laox, and become the biggest shareholder of the money-losing Japanese retailer.

Suning said it aimed to use Laox's expertise in the highly competitive Japanese consumer electronics retail market to help it improve business practices, including pricing policies, store layout and customer service.

Suning competes with Best Buy Co Inc (BBY.N), the biggest U.S. electronics retailer, and GOME Electrical Appliances (0493.HK) for customers in China, the world's third-biggest economy. (US$1=6.832 Yuan)