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EU Antitrust Clearance Secured
A consortium including Saudi Arabia’s Public Investment Fund (PIF) has secured approval from the European Commission for its $55 billion acquisition of video game developer Electronic Arts (EA) . The EU’s competition regulator concluded the deal would not raise competition concerns, as it has a “limited impact” on relevant markets .
The consortium, which includes Jared Kushner’s Affinity Partners and private equity firm Silver Lake, announced the deal in September last year . It represents the largest leveraged buyout in history .
Still Subject to Foreign Subsidy Rules
While the merger rules review is now complete, the transaction remains under examination under the EU’s Foreign Subsidies Regulation (FSR) . This regulation is designed to prevent companies from using unfair non-EU state subsidies to gain an advantage when acquiring businesses in the bloc .
The FSR review, which is widely viewed as the more significant regulatory hurdle, is expected to be cleared by the EU’s July 30 deadline, according to sources familiar with the matter .
Deal Implications and Future Outlook
The acquisition is a major move by PIF to become a global hub for gaming and sports, aligning with Saudi Arabia’s broader economic diversification efforts .
However, industry observers have raised concerns about potential cost-cutting measures at EA following the deal. The transaction will saddle the company with approximately $20 billion in new debt . Speculation has focused on potential layoffs or studio closures, with particular attention on EA’s subsidiary BioWare . The deal is also expected to result in EA being delisted from the Nasdaq stock exchange
