UPDATE 2-Nidec to buy Emerson unit,seen paying up to $820 mln

* Deal worth an estimated 60-70 bln yen – Nikkei

* Marks Nidec’s latest expansion through acquisitions

* Strong yen whetting Japan firms’ appetite for overseas M&A

* Analyst: move is “positive”, to contribute to earnings soon

* Shares jump 4.9 pct vs 0.4 pct rise in Nikkei average
(Adds analyst comment, details, share price)

By Nobuhiro Kubo

TOKYO, Aug 18 (BestGrowthStock) – Japan’s Nidec Corp (6594.OS: ) said
it would buy the motors business of U.S. firm Emerson Electric Co
(EMR.N: ) in a deal the Nikkei newspaper said could be worth up to
$820 million, leveraging the yen’s strength to expand abroad via
acquisitions.

The move is the latest in Nidec’s expansion through M&A after
the purchase of an Italian firm this year, and comes as the
rising yen reignites a push by Japanese companies to snap up
overseas assets and secure growth outside their sluggish home
market. [ID:nTOE679050]

Shares of the Japanese precision motor maker jumped 5 percent
after the announcement.

“This is a positive move for Nidec. By making the yen’s
strength work for the deal, the firm can gain a profitable
business unit of Emerson,” said SMBC Friend Securities analyst
Toru Kitani. “I am sure the unit will contribute to Nidec’s
earnings soon.”

Nidec said in a statement that it aims to strengthen its
competitiveness in automotive and home appliance motors by
combining Emerson’s expertise in electronic control technology
with its own technology for small, highly efficient motors.

It will take over the plants and R&D facilities of Emerson’s
motors unit worldwide as well as around 6,000 personnel, said
Nidec, which gets about 30 percent of its revenue from precision
motors used in hard disk drives.

Nidec said it will pay for the unit in cash but did not
disclose the value of the deal. The Nikkei business daily
reported earlier that it would be worth an estimated 60 billion
yen to 70 billion yen ($701 million to $818 million).

Emerson is an industrial automation equipment maker, whose
motors and controls business generated revenue of $836 million in
the year to September 2009.

Nidec has grown through M&As under its president and founder
Shigenobu Nagamori and has snapped up 29 companies and businesses
so far under his watch. In January, the Japanese firm bought
Italy’s Sole Motors to beef up its home appliance motors business
in Europe.

Increased spending power due to the strength of the yen —
which hit a 15-year high against the dollar last week — was one
reason that Nidec decided on the Emerson acquisition at this
time, a Nidec spokesman said.

Nidec said it will brief on the deal at 0700 GMT.

Shares of Nidec gained 4.9 percent to 7,500 yen after the
announcement, outperforming a 0.4 percent rise in the benchmark
Nikkei average.
(Reporting by Nobuhiro Kubo; Editing by Chris Gallagher)

UPDATE 2-Nidec to buy Emerson unit,seen paying up to $820 mln