Magna International has bought Porsche's roof systems manufacturer CTS Fahrzeug-Dachsysteme for EUR170m.

CTS is one of the leading manufacturers of roof systems for the motor industry and will now be owned by Magna, subject to approval from European anti-trust authorities.

It was founded in 1996 by Porsche and what was then Daimler-Benz before Porsche acquired the company completely in September 2003. During that time, the CTS business developed successfully and numerous other vehicle manufacturers signed on as customers.

Porsche CEO Wendelin Wiedeking said: "Both partners will benefit from this decision. Porsche can concentrate fully on its core competencies such as development, production and sales of complete vehicles, while, with Magna, CTS now has a partner which allows potential for new growth."

Magna co-CEO Siegfried Wolf said Magna would: "...grow in roof systems both by broadening the current CTS customer base and by expanding geographically."

In the 2004 fiscal year, CTS made sales of EUR417m, employing 1,100 staff at its eight locations in Germany and the US.

Magna currently employs more than 82,000 staff in 222 production facilities and 58 development centres world-wide.