EU gives antritrust approval to the Saudi-led $55 billion takeover of EA

EU gives antritrust approval to the Saudi-led $55 billion takeover of EA It's another step forward for the blockbuster deal. The European Union's executive branch has given antitrust approval to a proposed $55 billion takeover of Electronic Arts. "The Commission concluded that the notified transaction would not raise competition concerns, given its limited impact on competition in the markets where the companies are active," the European Commission said. The Commission noted that it scrutinized the deal, which is led by Saudi Arabia's sovereign wealth fund, under its normal merger review process. It said the acquisition mainly relates to the production and distribution of PC, console and mobile games, as well as esports events. This antitrust approval is a significant step toward the deal closing. However, as Reuters notes, the EU has not fully given the takeover the green light yet. The Commission is also reviewing the deal to ensure it complies with foreign subsidy rules. There's a July 30 deadline for that decision, and the deal is expected to clear that hurdle as well. The acquisition requires approval from other regulators, including the Committee on Foreign Investment in the US. Earlier this year, members of Congress called on the Federal Trade Commission to "thoroughly review" the potential merger. If the deal goes through, Saudi Arabia's Public Investment Fund would own over 93 percent of EA. Private equity firms Silver Lake and Affinity Partners would also have a stake. EA shareholders overwhelmingly approved the takeover in December. If the acquisition closes, it would be the largest leveraged buyout in history — EA would be saddled with over $20 billion in debt used to finance the deal. [Image text:] Electronic Arts