A consortium of investors, including Saudi Arabia’s Public Investment Fund (PIF), has obtained antitrust clearance from the European Union for its $55 billion takeover of video game developer Electronic Arts (EA.O), the European Commission announced on Thursday.
The deal, which was unveiled in September last year, involves Saudi Arabia’s $1 trillion sovereign wealth fund, Jared Kushner’s investment firm Affinity Partners, and private equity firm Silver Lake. It represents the largest leveraged buyout ever recorded.
Following a thorough examination, the EU’s competition authority concluded that the acquisition would not raise competition issues under the bloc’s merger regulations, confirming earlier reports. However, the transaction is still subject to scrutiny under the EU’s Foreign Subsidies Regulation (FSR). This regulation aims to prevent companies benefiting from subsidies outside the EU from gaining an unfair competitive edge when acquiring businesses within the 27-member union.
Notably, the FSR review is considered the more challenging regulatory obstacle for the transaction. PIF is also anticipated to receive clearance under the EU’s subsidy rules, with the European Commission’s final decision expected by July 30.
