EU Approves Antitrust for Saudi-led $55 Billion Takeover of Electronic Arts

EU Antitrust Approval Granted

The European Union's executive branch has given antitrust approval to the proposed $55 billion takeover of Electronic Arts. The European Commission concluded that the transaction would not raise competition concerns, citing its limited impact on competition in the markets where the companies operate. This decision was made following a review under the EU's standard merger review process.

Details of the Acquisition

The acquisition, led by Saudi Arabia's sovereign wealth fund, primarily involves the production and distribution of PC, console, and mobile games, as well as esports events. The Commission noted that it scrutinized these aspects during its review. If the deal proceeds, Saudi Arabia's Public Investment Fund would own over 93 percent of EA, with private equity firms Silver Lake and Affinity Partners also holding stakes.

Remaining Regulatory Hurdles

While the antitrust approval is a significant step, the EU has not yet fully greenlit the takeover. The Commission is also reviewing the deal to ensure compliance with foreign subsidy rules, with a decision deadline set for July 30. Additionally, the acquisition requires approval from other international regulators, including the Committee on Foreign Investment in the US, where members of Congress have called for a thorough review.

Financial Implications

EA shareholders overwhelmingly approved the takeover in December. If the acquisition closes, it would represent the largest leveraged buyout in history, with EA incurring over $20 billion in debt to finance the deal.