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 the markets where the companies operate.
The Commission conducted a thorough review of the deal, which is led by Saudi Arabia’s sovereign wealth fund and primarily relates to the production and distribution of PC, console, and mobile games, as well as esports events. This approval marks a significant step toward finalizing the deal, although the EU has yet to fully authorize it.
The Commission is also evaluating the acquisition to ensure compliance with foreign subsidy rules, with a decision deadline set for July 30. Regulatory approvals are still needed from other authorities, including the Committee on Foreign Investment in the United States. Earlier this year, U.S. lawmakers urged the Federal Trade Commission to conduct a comprehensive review of the merger.
If the acquisition is completed, the Public Investment Fund of Saudi Arabia would own over 93 percent of EA, along with stakes from private equity firms Silver Lake and Affinity Partners. EA shareholders had overwhelmingly approved the takeover in December. Should the deal close, it would become the largest leveraged buyout in history, leaving EA with more than $20 billion in debt incurred to finance the transaction.
