This is another step forward for this blockbuster deal.
The executive branch of the European Union 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 said it had examined the operation, led by the Saudi sovereign wealth fund, as part of its normal merger review procedure. The acquisition primarily concerns the production and distribution of PC, console and mobile games, as well as esports events.
This antitrust approval is an important step toward closing the transaction. However, as Reuters notes that the EU has not yet fully given the green light to the takeover. The Commission is also reviewing the deal to ensure it complies with rules on foreign subsidies. The deadline is July 30 for this decision, and the agreement should also remove this obstacle.
The acquisition requires approval from other regulators, including the United States Committee on Foreign Investment. Earlier this year, members of Congress called on the Federal Trade Commission to “thoroughly review” the possible merger.
If the deal goes through, the Saudi Public Investment Fund will own more than 93 percent of EA. Private equity firms Silver Lake and Affinity Partners also reportedly have a stake. EA shareholders overwhelmingly approved the buyout in December. If the acquisition is completed, it would be the largest leveraged buyout in history – EA would be saddled with more than $20 billion in debt used to finance the deal.
