Israel Aerospace Industries approves merger with defense subsidiary ELTA – Ynetnews

Israel Aerospace Industries approves merger with defense subsidiary ELTA  Ynetnews

Israel Aerospace Industries (IAI), one of Israel's largest defense companies, is moving ahead with plans to absorb its subsidiary ELTA Systems, a major developer of radar, intelligence and electronic warfare technologies, in a restructuring aimed at simplifying operations and strengthening the company's position in the global defense market. IAI's board of directors approved the merger agreement on Wednesday, October 28, following government approval announced in July. The transaction is expected to be completed by the end of 2027, provided the company obtains the remaining regulatory approvals and meets other conditions. The deadline could be extended by mutual agreement. Under the proposed arrangement, ELTA would cease to exist as a separate legal entity, with all its assets, operations, rights and liabilities transferred to IAI.

However, the company would retain its name and continue operating as a division within the larger organization. ELTA is a key part of Israel's defense industry, developing advanced radar, surveillance and electronic warfare systems used by the Israeli military and armed forces around the world. Its technologies are integrated into a range of defense platforms, making it a major contributor to IAI's international business. The merger is part of IAI's broader "One Company" strategy, which seeks to consolidate operations, reduce administrative complexity and improve coordination between its various divisions. By eliminating the legal separation between the two