Home / Business and Economy / Saudi PIF Nears EA Acquisition Approval
Saudi PIF Nears EA Acquisition Approval
17 Jul
Summary
- Saudi Arabia's PIF is nearing EU approval for a $55 billion EA acquisition.
- The deal is the largest leveraged buyout in history.
- EU's Foreign Subsidies Regulation review is set to conclude July 30.
A significant acquisition in the video game industry is on the verge of European Union approval. Investors, including Saudi Arabia's Public Investment Fund (PIF), are set to receive the go-ahead for their $55 billion purchase of Electronic Arts (EA).
The deal, announced last September, is noted as the largest leveraged buyout in history. This move aligns with Saudi Arabia's broader strategy to diversify its economy beyond oil and establish itself as a global hub for sports and gaming.
The European Commission, acting as the EU's competition watchdog, is scheduled to conclude its preliminary review under the Foreign Subsidies Regulation by July 30. This regulation aims to prevent unfair subsidies from non-EU countries impacting competition within the bloc.
Furthermore, the acquisition is anticipated to receive unconditional clearance under standard merger rules, with that preliminary review expected to end on July 22. This indicates a smooth path forward for the substantial transaction.
