TOKYO, Aug 27 (Reuters) - Taiwanese components maker

Yageo said on Wednesday it expects to obtain Japan's

national security clearance for its proposed $740 million buyout

of Shibaura Electronics, a major step forward for the

rare foreign unsolicited overture.

Yageo has concluded discussions with the Ministry of

Economy, Trade and Industry on the proposed conditions for the

buyout, the company said.

Based on these developments, Yageo will make all required

regulatory document submissions on Wednesday and expects to gain

approval "no later than September 10", it added.

(Reporting by Makiko Yamazaki; Editing by Muralikumar

Anantharaman)