JERUSALEM, June 19 (Xinhua) -- Israel's Finance Ministry announced on Tuesday approval of the acquisition of the state-owned Israel Military Industries (IMI) by Israeli defense giant Elbit Systems.

Elbit will pay the Israeli government 495 million U.S. dollars under the deal, said the ministry in a statement, adding that an additional payment of about 27 million dollars will be due upon IMI meeting certain performance goals.

The deal, approved by the Committee for the Tender of the Sale of State Shares, came after years of negotiations between the Israeli government and Elbit.

Elbit will relocate the IMI facilities from central Israel to the southern Negev area under the deal, a move that would allow real estate development in central Israel and economic development in the Negev Desert, Finance Minister Moshe Kahlon said in the statement.

Israeli Defense Minister Avigdor Lieberman said that his office "ensured that the old factories of IMI will be replaced with new ones, which will provide 1,000 jobs in southern Israel."

Bezhalel Machlis, president and CEO of Elbit Systems, said this acquisition "will be beneficial for Israel's economy."

"The completing of the transaction will enable us to offer an enhanced portfolio to both the Israeli and global markets," Machlis said.

IMI is the maker of ground forces ammunition, multiple types of rockets for air and artillery systems, and precision ordnance, as well as Israel army' iconic infantry firearms like the Uzi, the Galil assault rifle, and the Negev machine gun.

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 Israeli media reports. Enditem

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