European Commission approves PIF's acquisition of Electronic Arts

• The transaction was cleared under the EU Merger Regulation.
• The acquisition is valued at $55 billion.
• PIF will own 93.4% of Electronic Arts once the deal closes.
• The deal is the largest leveraged buyout in history.

Saudi Arabia's Public Investment Fund (PIF) has received European Commission approval for its acquisition of Electronic Arts under the EU Merger Regulation.

The Commission said the transaction, which covers the production and distribution of video games across mobile, PC and console platforms, as well as the organisation and commercialisation of esports events, does not raise competition concerns.

According to the Commission, the deal's limited impact on competition in the markets where the companies operate means it can proceed under the normal merger review procedure.

The case is listed in the Commission's public register under case number M.12213.

Regulatory clearance

The approval follows earlier reports that the European Commission was also expected to clear the transaction under the European Union's Foreign Subsidies Regulation after completing its preliminary review.

The $55 billion acquisition, announced in September last year, is being led by PIF alongside Affinity Partners and Silver Lake. Once completed, PIF will own 93.4% of Electronic Arts.

The acquisition is the largest leveraged buyout to date and marks another step in PIF's plans to expand Saudi Arabia's presence in the global gaming industry. 

It also supports the kingdom's broader strategy to diversify its economy beyond oil through investments across sectors including gaming, sports, tourism and infrastructure to meet its Vision 2030 goals.