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FinanceSaudi PIF-led group set to win EU approval for $55 bln EA acquisition
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A group of investors led by Saudi Arabia's Public Investment Fund (PIF), including Jared Kushner's Affinity Partners and private equity firm Silver Lake, is expected to secure European Union approval for its $55 billion acquisition of video game developer Electronic Arts. The deal, the largest leveraged buyout in history, was announced in September 2025. Sources say the European Commission will clear the transaction under its Foreign Subsidies Regulation (FSR) after a preliminary review ending July 30, 2026. The deal is also expected to receive unconditional clearance under EU merger rules by July 22. The acquisition underscores Saudi Arabia's push to diversify from oil into gaming, sports, and other sectors. Two previous Middle East-linked deals faced lengthy EU investigations, but this one appears set for smoother approval.
Source report
By: Foo Yun Chee Source: Reuters
BRUSSELS, July 17 (Reuters) — A group of investors led by Saudi Arabia's Public Investment Fund (PIF) is expected to secure European Union approval for its $55 billion acquisition of video game developer Electronic Arts (EA) under EU subsidy rules, according to people familiar with the matter.
The deal—announced in September last year—involves Saudi Arabia's $1 trillion wealth fund, Jared Kushner's Affinity Partners, and private equity firm Silver Lake. It represents the largest leveraged buyout in history.
Strategic Significance
The acquisition marks a major push by PIF to establish itself as a global hub for gaming and sports, betting on the enduring value of blockbuster game franchises as the industry recovers from a prolonged downturn. It also underscores Saudi Arabia's broader diversification strategy away from oil into infrastructure, tourism, sports, and gaming.
Regulatory Outlook
The European Commission, which serves as the EU's competition enforcer, is set to clear the deal after the conclusion of its preliminary review under the Foreign Subsidies Regulation (FSR) on July 30, the sources said.
The FSR is designed to prevent unfair non-EU subsidies to companies seeking to acquire rivals within the 27-country bloc.
The deal is also expected to receive unconditional EU clearance under standard merger rules when a preliminary review ends on July 22.
Previous Precedents
Two earlier deals involving Middle Eastern companies faced more scrutiny:
- ADNOC (Abu Dhabi state oil firm) – acquisition of German chemicals company Covestro
- e& (UAE telecoms group) – bid for parts of Czech telecoms company PPF
Both were cleared only after lengthy investigations and the imposition of remedies.
Responses
- The European Commission and Electronic Arts declined to comment.
- PIF did not respond to emailed requests for comment.
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)
Source
Yahoo FinanceWestern
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Saudi PIF-led group set to win EU approval for $55 billion Electronic Arts acquisition under subsidy rules