EU Grants Antitrust Clearance for Saudi-Led EA Acquisition
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The European Commission grants antitrust approval for the $55 billion takeover of Electronic Arts, marking a major milestone toward the largest leveraged buyout in history.
The European Union's executive branch has granted antitrust approval for the proposed $55 billion acquisition of Electronic Arts (EA), as Engadget reports.
In a statement, the European Commission indicated that the transaction would not create competition concerns, citing the deal's limited impact on the specific markets where the involved companies operate. The Commission's review focused on the production and distribution of mobile, console, and PC games, in addition to esports events.
While the antitrust hurdle has been cleared, the deal has not yet received final approval from the EU. Engadget reports that the Commission is currently reviewing the takeover to ensure compliance with foreign subsidy rules, with a decision deadline set for July 30.
Beyond the European Union, the acquisition faces further regulatory scrutiny. The Committee on Foreign Investment in the US must also approve the deal. Engadget notes that members of Congress earlier this year urged the Federal Trade Commission to conduct a thorough review of the merger.
If the takeover is finalized, Saudi Arabia's Public Investment Fund would hold more than 93 percent of EA. The deal also includes stakes for private equity firms Affinity Partners and Silver Lake. EA shareholders gave their approval for the acquisition in December.
The transaction would represent the largest leveraged buyout in history. As a result of the financing structure, EA would be burdened with more than $20 billion in debt.