The Israeli government is to finalise the long-running privatisation of Israel Military Industry (IMI) Systems by reportedly selling the defence contractor to Elbit Systems for ILS1.8 billion (USD522 million).
Finance minister Moshe Kahlon announced the deal on 11 March, Israeli media reported. The sale is part of a government initiative to remove industrial facilities in order to make room for public housing.
The acquisition will include the displacement of IMI factories to Negev in southern Israel to strengthen employment in that region, while also freeing up government-owned land for housing in Ramat Hasharon, where the company currently primarily resides.
Tel Aviv was authorised to sell the company to industry in 2013, and Elbit System’s bid for IMI is expected to include an additional ILS100 million should the company perform well this year.
Want to read more? For analysis on this article and access to all our insight content, please enquire about our subscription options at ihs.com/contact