Rafael eyeing Brazilian defense company

Published: Nov. 11, 2009 at 11:48 AM

TEL AVIV, Israel, Nov. 11 (UPI) -- Israel's Rafael Advanced Defense Systems is in the final stages of negotiations for the purchase of a leading Brazilian defense company, an Israeli daily reported Wednesday.

Citing anonymous sources, Haaretz did not name the company but said it was estimated at $50 million and that the prospective purchase would mark Rafael's "first acquisition in the South American economic powerhouse."

Negotiations over the purchase are said to have been conducted by a senior Israeli delegation visiting Brazil this week, led by President Shimon Peres.

Rafael Advanced Systems Ltd. is the Israeli authority for development of weapons and military technology.

Developing and producing fighting technologies, Rafael is a former sub-division of Israel's Defense Ministry and is considered a government company. All of its cases are classified.

Yet on Wednesday, Haaretz said the company was "in the advanced stages of negotiations" with a Brazilian defense company -- a deal seen as an added lever in Israel's bid to extend operations in Brazil.

In talks with Peres, Brazilian Defense Minister Nelson Jobim suggested that his country supported the deal as a condition that Israeli defense companies establish their productions operations in Brazil.

At present, Elbit -- one of the world's largest defense electronics manufacturers and integrators -- is the largest Israeli company based in Brazil. Its sales have capped $750 million in the past 10 years.

Last year alone the company was awarded a $187.5 contract by Embraer, the Brazilian aircraft company, for the supply of avionics upgrades for the Brazilian AMX jet project.

At the start of his six-day visit to Brazil and Argentina, Peres -- the first Israeli president to visit the South American country in 40 years -- pushed for stronger defense cooperation, countering Iran's growing influence in Latin America.

"I don't want to argue about the president of Iran on Brazilian soil, but we think his policies are a global danger," Peres said in Brasilia. "I cannot ignore that Iran makes weapons and wants to destroy Israel."

His warning before the Brazilian Congress sounded two weeks before Iranian President Mahmoud Ahmadinejad pays an official visit to Brazil.

In July, Israeli Foreign Minister Avigdor Lieberman toured Latin America, rallying the support of Brazil in countering Tehran's nuclear program.

At the time, however, his Brazilian counterpart sided with Iran's stated aim of nuclear development for non-military use.

Along with the United States, Israel has long suspected Iran of trying to develop an atomic arsenal under the guise of a civilian nuclear program -- a charge that Tehran has repeatedly rebuffed.

In Brazil, Peres will also be holding talks with President Luiz da Silva on Wednesday.

© 2009 United Press International, Inc. All Rights Reserved.
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