EU approves Saudi-led $55 billion takeover of Electronic Arts
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The European Commission granted antitrust approval to a $55 billion takeover of Electronic Arts led by Saudi Arabia's sovereign wealth fund. The Commission stated the deal would not raise competition concerns due to its limited market impact. The acquisition still requires clearance under EU foreign subsidy rules by July 30.
Antitrust Clearance
The European Commission approved the proposed $55 billion acquisition of Electronic Arts by Saudi Arabia's Public Investment Fund (PIF). The Commission concluded the transaction would not harm competition in PC, console, mobile games, or esports markets. The decision followed a standard merger review process.
Remaining Hurdles
The EU is still reviewing the deal under foreign subsidy rules, with a July 30 deadline. Approval is also needed from the US Committee on Foreign Investment. In February, US lawmakers urged the Federal Trade Commission to scrutinize the merger.
Deal Structure
If completed, PIF would own over 93% of EA, with stakes held by Silver Lake and Affinity Partners. EA shareholders approved the takeover in December. The acquisition would be the largest leveraged buyout in history, saddling EA with over $20 billion in debt.
What's Next
The EU is expected to clear the deal under foreign subsidy rules by July 30. It remains unclear whether US regulators will impose conditions on the acquisition.
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EU approves Saudi-led $55 billion takeover of Electronic Arts
