The board of Israel-based real estate company Gazit-Globe Ltd. approved a merger with its wholly owned and fully consolidated unit G Israel Commercial Centers Ltd.

The unit, which is engaged primarily in the acquisition, development and management of shopping centers in Israel, will merge with and into Gazit-Globe.

No consideration is payable in connection with the merger, and the unit will cease to exist as a separate legal entity.

The deal is subject to certain customary conditions, including third-party consents and a ruling from the Israeli Tax Authority.

The merger is expected to optimize its consolidated activities in Israel and increase the efficiency of its Israeli units, among other benefits.