TOKYO, Aug 27 (Reuters) - Taiwan's Yageo said

on Wednesday it expects to obtain a national security clearance

from Japan for its proposed $740 million buyout of Shibaura

Electronics after concluding discussions with the

government on conditions for the deal.

Its unsolicited and sweetened bid for Shibaura handily bests

a rival offer from Minebea Mitsumi ( MNBEF ) that is set to

expire on Thursday.

Yageo, the world's largest maker of chip resistors, said in

a statement that it expects to receive clearance no later than

September 10 and plans to submit all necessary documents on

Wednesday after discussions with Japan's industry ministry.

It did not specify what conditions for the deal had been

discussed.

The deal has drawn close investor attention as a test of

Japan's openness to unsolicited takeovers. While government M&A

guidelines issued in 2023 have eased the stigma around

unsolicited buyouts in Japan, such offers by foreign firms

remain rare.

Yageo is offering to buy Shibaura for 7,130 yen per share or

108.7 billion yen.

By comparison, Minebea, which was brought by Shibaura as a

white knight to counter the Taiwanese firm's unsolicited bid,

has offered 6,200 yen per share.

Minebea has said it does not plan to raise the offer or

extend the offer period. A spokesperson for the company declined

further comment on Wednesday.

Shibaura declined to comment.