HAIFA, Israel, July 7 -- Elbit Systems Ltd. and El-0p Electro-Optics Industries Ltd., two global defense companies, have completed their merger. El-Op will function as a subsidiary of Elbit Systems and will operate within the company's new organizational structure. The merger between Elbit Systems and El-Op is a major milestone for both companies, said Joseph Ackerman, president and CEO of Elbit Systems. It unites the complimentary strengths of two industry leaders, each one backed by decades of specialized expertise at the forefront of technology. The combination of the existing capabilities of the two companies, within an organizational framework that maximizes the companies' high level human resources and other assets, gives us the ability to better respond to the needs of our customers and to improve our competitive position in the worldwide defense marketplace. The merger will help enhance our business growth for the benefit of our employees and shareholders. El-Op's financial results will be represented in Elbit Systems' consolidated financial reports starting in this year's third quarter. The merger acquisition costs allotted to in-process research and development will be anywhere from $30 to $50 million, said Elbit Systems. When the company determines the amount that can be written-off from these costs it will be reflected in this year's third-quarter financial results, the company said.