Saudi PIF-led $55bn Electronic Arts deal set for EU approval

• The deal would mark the largest leveraged buyout in history.
• EU approval would represent another milestone in Saudi Arabia's gaming ambitions.
• The acquisition aligns with Saudi Arabia's broader economic diversification strategy beyond oil.

A group of investors led by Saudi Arabia's Public Investment Fund (PIF) is set to secure European Union approval for its $55 billion acquisition of Electronic Arts under the bloc's foreign subsidy rules.

As reported by Reuters, the European Commission is expected to clear the transaction after completing its preliminary review under the Foreign Subsidies Regulation (FSR) on July 30th. 

The FSR is designed to prevent unfair non-EU subsidies from distorting competition when companies seek to acquire businesses within the 27-member bloc.

The deal is also expected to receive unconditional approval under EU merger rules when the Commission's preliminary review concludes on July 22nd. 

Growing ambitions 

Saudi Arabia's $1 trillion sovereign wealth fund, alongside Jared Kushner's Affinity Partners and private equity firm Silver Lake, announced the acquisition in September last year. 

The transaction is the largest leveraged buyout in history and will see PIF own 93.4% of EA once the deal closes. 

The acquisition marks another major step in PIF's ambition to establish Saudi Arabia as a global hub for gaming and sports, while reinforcing the kingdom's wider strategy to diversify its economy beyond oil into sectors including infrastructure, tourism, sports and gaming.