Israeli defense giant Elbit buys state-owned arms maker IMI

JERUSALEM, March 11 (Xinhua) -- Elbit Systems, a major Israeli defense electronics company, will buy the state-owned Israel Military Industries (IMI) at a cost of 1.8 billion new shekels (about 522 million U.S. dollars), the Israeli Ministry of Finance said in a statement on Sunday.

Another 100 million new shekels will be paid by Elbit later if IMI reaches specified overseas sales goals in 2018, the statement said.

Elbit would also relocate the IMI facilities from central Israel to the southern Negev area, a move that would allow real estate development in central Israel and economic development in Negev.

The Israeli media "Globes" reported that IMI is the maker of iconic Israeli infantry firearms like the Uzi, the Galil assault rifle and the Negev machine gun, as well as much of the IDF ground forces' ammunition, multiple types of rockets for air and artillery systems, and precision ordnance.

Minister of Finance Moshe Kahlon said the agreement reached Sunday continues the ministry's policy of "vacating areas in demand areas for the benefit of the public."

"Transferring the plants to the Negev will allow for the construction of thousands of homes while strengthening industry and employment in Negev," he explained.

Israeli media quoted Israeli Defense Minister Avigdor Lieberman as saying that "the defense establishment is the biggest social and political engine in the country, and moving the IMI factories ... will bring Negev thousands of jobs and billions in investment."

The privatization of IMI was first approved by the Israeli government in 2013, and Elbit won the government's tender process for the purchase, according to the Israeli media. Enditem