Rafael, IAI merger inevitable
26 JUN 2019
A merger between Israeli defense companies Israel Aerospace Industries (IAI) and Rafael Advanced Systems is inevitable, Globesreported citing IAI chairperson Harel Locker.
Locker was cited as saying that there is not much logic in the two firms competing with one another in the sector of missiles, and that a merger between might be inevitable. Locker noted that these firms are the largest exporters in Israel, IAI exporting 80% of its production, and Rafel, 50%. There is a global trend for mergers, and the industry is becoming a place for giants.
Locker was cited as saying that there is not much logic in the two firms competing with one another in the sector of missiles, and that a merger between might be inevitable. Locker noted that these firms are the largest exporters in Israel, IAI exporting 80% of its production, and Rafel, 50%. There is a global trend for mergers, and the industry is becoming a place for giants.
IAI itself merged three of its divisions as part of the trend for consolidation in the sector. Rafael and IAI are already cooperating on many fields, such as for the Iron Dome, Locker continued.
A merger between the firms was previously entertained, though eventually taken off the agenda, the report said, adding that competition among the firms also emerged between Rafael and IAI to be the successful bidder to buy Aeronatuics.
The report suggested that the recent sale of IMI to Elbit Systems in the sector may provide the motivation for merger between the firms.