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EA's $55 Billion Acquisition by Saudi PIF Clears Final EU Subsidy Hurdle
The planned $55 billion acquisition of video game developer Electronic Arts (NASDAQ:EA) by a group led by Saudi Arabia’s Public Investment Fund (PIF) has received approval from the European Union under its foreign subsidy rules. The European Commission's decision, confirmed in a Friday filing, removes what was considered the most significant regulatory hurdle for the landmark deal.
Final Approval Secured
This approval was granted under the EU's Foreign Subsidies Regulation, a framework designed to prevent non-EU government subsidies from creating unfair competitive advantages for companies acquiring businesses within the 27-nation bloc. The transaction had already received clearance under standard EU merger rules last week, but the subsidy review was seen as a more stringent test.
In a regulatory filing on Thursday, Electronic Arts confirmed it had received all necessary regulatory approvals as of July 30. The company stated that it now expects the acquisition to close on August 4.
AdStrategic Context
The deal represents a major strategic investment for Saudi Arabia's PIF, which is aggressively expanding its portfolio to become a global hub for the gaming and esports industries. The sovereign wealth fund's acquisition of EA, a developer of blockbuster franchises, signals a significant bet on the long-term value of established gaming properties as the sector recovers from a recent downturn.
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