European Commission filings show that Saudi Arabia's Public Investment Fund (PIF), together with a group of co-investors, secured clearance on Friday under the European Union's rules governing foreign subsidies for their proposed $55 billion purchase of video game developer Electronic Arts.
In a regulatory filing on Thursday, Electronic Arts said it had obtained all regulatory approvals as of July 30 and expects the transaction to close on August 4. The filing formalized the company's statement that no outstanding regulatory conditions remained as of that date.
The deal had already been approved under the EU's merger framework last week. However, the separate review under the Foreign Subsidies Regulation (FSR) was viewed throughout the process as the more substantial hurdle to final approval.
The FSR is aimed at blocking distortions created by subsidies granted outside the European Union and is specifically designed to address cases where non-EU financial support could give an acquirer an unfair advantage when targeting firms within the 27-country bloc.
From a strategic perspective, the acquisition marks a prominent expansion of PIF's activity into the global games and sports sectors. The filing and related commentary portray the transaction as consistent with Saudi Arabia's declared economic diversification priorities away from oil and toward areas including infrastructure, tourism, sports and gaming.
Market participants have tracked the approvals closely because they resolved parallel regulatory pathways - the standard merger review and the subsidy-focused assessment. With both elements cleared and Electronic Arts reporting that all regulatory conditions were satisfied as of July 30, the companies involved now appear positioned to proceed toward the anticipated early August close.
Context and implications
- The EU clearance under the FSR removes a key regulatory uncertainty that had been singled out during the review process.
- The transaction aligns with PIF's stated goal to build scale in gaming and sports, and it fits within a wider diversification strategy that highlights non-oil sectors such as infrastructure and tourism.
- Electronic Arts confirmed receipt of all approvals and set an expected closing date of August 4, subject to the completion of remaining procedural steps.