EU set to clear Saudi PIF's $55bn Electronic Arts acquisition
A consortium led by Saudi Arabia's sovereign wealth fund is poised to secure European Union approval for the largest leveraged buyout in history, signaling a smoother path for Gulf capital under Brussels' new subsidy rules.
A group featuring Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners and Silver Lake is set to win European Union antitrust approval for its $55 billion takeover of Electronic Arts. The European Commission is expected to grant unconditional clearance under standard merger rules when a preliminary review concludes on July 22. Regulators are also poised to clear the transaction under the EU's Foreign Subsidies Regulation by July 30, according to people familiar with the matter.
The acquisition, announced last September, stands as the largest leveraged buyout on record. For the video game sector, the commitment of such massive capital reflects a strong financial bet on the enduring value of blockbuster franchises as the industry emerges from a prolonged downturn. PIF, Electronic Arts and the European Commission all declined to comment on the pending approvals.
The transaction represents a defining move for PIF as the $1 trillion fund executes its strategy to establish Saudi Arabia as a global hub for sports and gaming. It also serves as a high-profile example of the kingdom's broader economic agenda to transition its revenues away from fossil fuels and toward sectors like infrastructure, tourism and entertainment.
The Foreign Subsidies Regulation is a Brussels tool designed to prevent companies from using unfair financial backing from non-EU governments to acquire European rivals. The Electronic Arts clearance process contrasts sharply with recent experiences of other Middle Eastern acquirers. Abu Dhabi state oil firm ADNOC's purchase of German chemicals group Covestro and UAE telecoms company e&'s bid for assets of Czech group PPF both triggered lengthy investigations and required formal remedies.
Clearing the Electronic Arts deal at the preliminary review stage avoids those protracted regulatory battles. For market professionals, the outcome indicates that sovereign wealth fund capital can still move efficiently into large-cap western technology assets when the target does not trigger traditional monopoly concerns. The case establishes a key benchmark for how Brussels applies its new subsidy tools to the world's largest leveraged buyouts.
