UPDATE 1-Nidec buys majority stake in Fuji Electric unit
(Recasts, adds analyst comment)
TOKYO, Oct 1 (Reuters) - Japan's Nidec Corp (6594.OS), the world's largest maker of tiny motors used in hard disk drives, plans to buy a majority stake in Fuji Electric Holdings' (6504.T) industrial motor unit, in a move expected to help cut costs amid a fierce price war.
Nidec, which has grown rapidly through acquisitions, said it will pay 10 billion yen ($94 million) for a 60 percent holding and may acquire the whole unit in the future.
"Having greater scale will enable Nidec to lower costs," said Akihiko Uchino, a senior analyst at Mitsubishi UFJ Securities. "The top maker needs to gain in size so that the industry can avoid cut-throat competition."
Nidec shares rose 0.6 percent to 6,420 yen after the news but Fuji Electric shares fell more than 5 percent to 236 yen. The overall market climbed 1.4 percent.
The deal follows Nidec's proposal last month to pay up to $283 million to buy Toyo Denki Seizo KK (6505.T) to tap overseas demand for motors used in railway cars. ($1=106.01 Yen) (Reporting by Sachi Izumi; Editing by Edwina Gibbs)
