Raphael intends to establish a subsidiary in the UK called RWAVE for the purpose of marketing

The Israeli company Raphael intends to establish a subsidiary in the UK called RWAVE for the purpose of marketing, selling and developing combat systems. At the same time, Rafael is in advanced talks to acquire a British company engaged in the defense industry.
"In the UK, there are significant changes politically, economically and security-wise. The Brexit has led to a focus on the UK labor market and much emphasis is placed on increasing jobs and local investment," Raphael explained in her application for government approval for the move. "So far, British investment in R&D in industry has been small, and with the change in the threat of attribution, new needs have been created for which the British defense industry has no answer."
In her reasons for the request for approval, Raphael stated that in recent years she has been making efforts to increase her business activity in the UK, "in light of the multiplicity of existing and future opportunities, which include, among other things, precise tactical armament; active defense for armored vehicles; Electronic Warfare; Weapon positions; ICT; And air defense. "
Raphael has revealed that it is in an advanced process to acquire a UK company with local manufacturing capabilities, whose classification is required. It was explained that "as soon as this transaction is approved, Rafael will examine the need for the existence of the two companies."
Raphael already owns a foreign company based in the UK (and registered in the Netherlands) called ERCAS. This company serves as Rafael's sales platform in Europe, and now Rafael is asking the government to establish a new partnership in Germany, in which ERCAS will hold 40% of the shares, along with the German KMW and the American General Dynamics, which each hold 30%.
Rafael's investment in the new partnership, to be called EuroTrophy, will be up to $ 20 million. The joint venture will operate in Europe and market, sell and maintain one of Rafael's flagship products: the "Trophy" system for tank and tank defense.
In the reasons for this deal, Rafael stated that it is considered a leader in the global market in the field of active defense, and that it is interested in increasing its business activity in the sale of defense systems for embassies in Europe in general, and in Germany in particular.
However, it has been argued that the company is facing demands for the localization of production and job creation in the customer country, which have been increased due to the corona plague.
Raphael signed a contract with the German Ministry of Defense a year ago to supply a "windbreaker" system for the German army's Leopard 2 tank, with an estimated amount of about 50 million euros. The experiment phase in the system ended successfully about two months ago.
Raphael is trying to expand its overseas sales to improve its main weakness: relatively little activity in export markets (51% of turnover in 2020) and risky dependence on the Ministry of Defense, which provided 46% of its revenues in 2020. Raphael's backlog reached 7.1 $ 1 billion at the end of 2020 - a decrease of 7% compared to the end of 2019.