Reuters reported that investors, including Saudi Arabia’s Public Investment Fund, are seeking European Union approval for a $55 billion acquisition of Electronic Arts.
The deal, announced in September by Saudi Arabia’s $1 trillion sovereign wealth fund, Jared Kushner’s Affinity Partners and private equity firm Silver Lake, is the largest debt-financed acquisition in history.
The deal is a significant step in the Public Investment Fund's plan to become a global player in the gaming and sports sectors, capitalizing on the long-term value of major gaming chains during a period of recovery. It also reflects the Kingdom's efforts to diversify its economy away from oil dependency and increase its investments in sectors such as infrastructure, tourism, sports, and gaming.
The sources said the European Commission, the regulatory body responsible for combating monopolies and protecting competition within the bloc, will issue its decision on the deal after completing the initial review in accordance with the "Foreign Subsidies Regulation" on July 30.
The "Foreign Subsidies Regulation" aims to prevent unfair external support that could affect competition among companies within the EU, according to sources. The sources also expect the deal to ultimately receive unconditional EU approval under merger rules after the initial review scheduled for July 22.
It should be noted that previous deals by companies from the Middle East region, such as Abu Dhabi National Oil Company “ADNOC’s” acquisition of Germany’s Kovestro, and the attempt by the UAE’s E&P Group to acquire stakes in the Czech telecommunications company “BBF”, went through lengthy reviews and included corrective measures before obtaining final approvals.
