TOKYO, Oct 16 (Reuters) - Toho Co, the Japanese creator

of the "Godzilla" movie franchise, will acquire the U.S.

distributor of Studio Ghibli's famed animated films, it said on

Wednesday, to help drive overseas expansion.

The acquisition comes amid a surge in global popularity for

Japanese entertainment, and fits with Toho's multi-year growth

strategy centred on animation and overseas markets.

New York-based GKIDS, which distributed Ghibli's

Oscar-winning "The Boy and the Heron", will become a wholly

owned subsidiary of Toho after the deal, whose terms were not

disclosed in statements from both companies.

"We are truly thrilled to be joining forces with the

esteemed and storied Toho," GKIDS, which has distributed 13

animated films nominated for Oscars, said in a statement, citing

founder Eric Beckman and president Dave Jesteadt.

Toho's own "Godzilla Minus One", a hit in overseas markets,

took home an Oscar for visual effects in March, while "Shogun",

a historical epic filmed mostly in Japanese, won a record number

of Emmy Awards last month for a single season of drama.

Japan set up a committee last month to promote its

entertainment industry, which was worth 12.9 trillion yen

($86.43 billion) in 2021, ranking third globally after the

United States and China, the cabinet office said.

GKIDS manages the film catalogue of Ghibli, the studio of

renowned Japanese director Hayao Miyazaki, in North America.

In March, it inked a deal with Warner Bros. Discovery ( WBD )

to extend the U.S. streaming rights to Ghibli films.

($1=149.2500 yen)