European Union competition regulators have approved the antitrust aspect of the $55 billion acquisition of Electronic Arts, while a separate foreign subsidies review remains the final major regulatory hurdle.
BRUSSELS: A consortium led by Saudi Arabia’s Public Investment Fund (PIF), alongside Affinity Partners and private equity firm Silver Lake, has received European Union antitrust approval for its proposed $55 billion acquisition of video game publisher Electronic Arts (EA), marking a significant milestone for one of the largest buyout deals ever announced.
The European Commission confirmed on Thursday that its investigation found no competition concerns under the European Union’s merger regulations. The decision clears a major regulatory hurdle for the transaction, which was first announced in September last year.
The investor group includes Saudi Arabia’s sovereign wealth fund, estimated to manage approximately $1 trillion in assets, Jared Kushner-backed Affinity Partners, and technology-focused investment firm Silver Lake. The acquisition is considered the largest leveraged buyout in history by transaction value.
Despite the antitrust clearance, the deal has not yet received final approval. It is still undergoing examination under the European Union’s Foreign Subsidies Regulation (FSR), a framework introduced to ensure companies receiving financial support from governments outside the EU do not gain an unfair competitive advantage when acquiring businesses within the bloc.
The FSR review is viewed by industry analysts as the transaction’s most significant remaining regulatory challenge. However, people familiar with the matter told Reuters last week that the investor group is also expected to secure approval under the subsidy rules.
The European Commission is scheduled to announce its decision on the foreign subsidies review by July 30. If approved, the transaction would move significantly closer to completion, reinforcing Saudi Arabia’s growing investments in the global gaming and technology sectors as part of its broader economic diversification strategy.
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