The European Commission has granted approval for Saudi Arabia's Public Investment Fund (PIF) to acquire sole control of Electronic Arts Inc. in a leveraged buyout valued at $55 billion. The Commission announced its decision on July 23rd, stating that the acquisition "does not raise competition concerns" under the EU Merger Regulation.
The regulatory body's assessment concluded that the transaction would have a limited impact on competition within the markets where EA operates. This approval signifies that the deal does not pose a risk of "significantly impinge[ing] effective competition in the EU" region. The European Commission follows a standard procedure where mergers are approved unconditionally if they do not present such risks, or must be prohibited if they do, unless the merging firms propose suitable commitments to mitigate any impediments that could lead to higher prices or reduced consumer choice.
This decision comes despite earlier concerns raised by 46 US lawmakers who urged the Federal Trade Commission to investigate the deal for potential negative impacts on workers and anti-competitive practices that could violate American antitrust law. While the European Commission's approval is a significant step, the deal may still face scrutiny from other regulatory bodies.
The acquisition will see Saudi Arabia, alongside Silver Lake and Jared Kushner-founded Affinity Partners, become the new majority owners of EA. This development also brings into focus the human rights record of Saudi Arabia's ruling regime, which Amnesty International has cited for issues including arbitrary detention, execution of individuals for expressing opinions, abuse of migrant workers, and discrimination against women. The CIA has also previously linked the regime to the murder of journalist Jamal Khashoggi.