IMI-Rafael merger poses "Arrow" missile concern for IAI

Israel Aerospace Industries Ltd. (IAI) has reason to be concerned about a merger of Israel Military Industries Ltd. (IMI) and Rafael Advanced Defense Systems Ltd., mainly because of its effect on IAI's missile development plans.

IAI currently manufactures the Arrow anti-ballistic missile system, whose Arrow 3 version is being rapidly developed.

For years, IAI has also manufactured various versions of the Barak surface-to-air missile to protect strategic sites and ships.

For years, IAI concentrated on the hardware engineering of these missiles, while IMI built the missiles' motors at its Givon factory.

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