Bayerische Motoren Werke AG secured a 15 percent stake in SGL Carbon SE, adding to a 29 percent holding controlled by BMW heiress Susanne Klatten, in a move that keeps rival Volkswagen AG at bay.

BMW bought 5.2 percent of the shares directly and controls an additional 10 percent of SGL through financial derivatives, the Wiesbaden, Germany-based maker of carbon and graphite products said today. SGL, which will supply carbon fiber for BMW’s upcoming line of city cars, surged as much as 7.8 percent, valuing the stake at 474 million euros ($641 million).

“It appears the strategic importance of future lightweight materials is too significant in order to allow a major competitor potentially taking control,” said Arndt Ellinghorst, an analyst with Credit Suisse in London. 

(Bloomberg)