Kyushu Electric Power Co. and Saibu Gas Co. have agreed to take stakes in each other to expand their business cooperation and meet intensified competition in the energy industry, company officials said Wednesday.

As part of the deal, Kyushu Electric Power bought 2.44 million shares in Saibu Gas, 0.66 per cent of its outstanding shares, from Shinsei Bank on Oct. 3. The gas utility plans to buy stakes in the power company in the future, the officials said.

The two companies have already established a sales company for micro-gas turbines for private electric power generation and plan to jointly procure fuel and materials in the future, they said.