The European Union’s executive branch has granted antitrust approval for a proposed $55 billion takeover of Electronic Arts (EA). The European Commission stated that the transaction would not raise competition concerns due to its limited impact on relevant markets.
The Commission evaluated the deal, led by Saudi Arabia’s Public Investment Fund, under its standard merger review process. This acquisition involves the production and distribution of PC, console, and mobile games as well as esports events.
This approval represents a critical step toward finalizing the takeover. However, the European Commission is still reviewing the deal to ensure compliance with foreign subsidy rules, with a decision deadline set for July 30.
In addition to EU approval, the acquisition requires clearance from other regulators, including the Committee on Foreign Investment in the US. Earlier this year, members of Congress urged the Federal Trade Commission to conduct a thorough review of the merger.
If the deal proceeds, Saudi Arabia’s Public Investment Fund would control over 93 percent of EA. Private equity firms Silver Lake and Affinity Partners would also hold stakes in the acquisition. EA shareholders approved the takeover in December.
The transaction, if completed, would become the largest leveraged buyout in history, with EA assuming over $20 billion in debt to finance the deal.
