Saudi-led group files for EU approval of $55B EA buyout

Saudi Arabia’s Public Investment Fund and partners filed Wednesday for EU antitrust clearance of the $55 billion Electronic Arts ↘0.43% acquisition, according to Reuters.globalbankingandfinance
The deal, announced in September 2025, would be the largest leveraged buyout in history, taking the “Madden NFL” and “Battlefield” maker private.reuters
The consortium has not yet sought separate EU clearance under foreign subsidy rules designed to prevent state-backed entities from gaining unfair advantages.globalbankingandfinance

Saudi-Backed Group Seeks EU Approval for $55 Billion EA Acquisition

A consortium of investors led by Saudi Arabia’s Public Investment Fund filed for European Union antitrust clearance on Wednesday for its planned $55 billion acquisition of Electronic Arts, according to a European Commission filing reported by Reuters. The Commission has set a July 22 deadline to reach its decision on whether to approve the deal or open a full-scale investigation.grafa

The Deal

The acquisition, first announced in September 2025, would take the maker of “Battlefield” and “Madden NFL” private in what would be the largest leveraged buyout in history. The consortium includes PIF, private equity firm Silver Lake, and Jared Kushner’s Affinity Partners. Under the terms, EA shareholders are set to receive $210 per share in cash, a 25 percent premium over the company’s pre-deal trading price.variety

The financing structure relies on approximately $36 billion in equity contributions from the consortium members and roughly $20 billion in debt arranged by JPMorgan Chase. PIF would become the majority owner upon completion, with Silver Lake holding a minority stake and Affinity Partners owning about five percent.reuters

EU Scrutiny on Two Fronts

While the deal is expected to secure EU antitrust clearance, it faces a separate review under the bloc’s foreign subsidies regulation, which is designed to prevent state-backed entities from using unfair advantages to acquire European competitors. The group has not yet sought clearance under those subsidy rules.yahoo

European game developers had earlier contemplated raising regulatory concerns about the transaction, including on the foreign subsidy and merger control fronts, according to reporting by ION Analytics’ Dealreporter. The deal represents a test case for how Brussels applies both competition and foreign-subsidy frameworks to large acquisitions backed by non-EU sovereign capital.ionanalytics

Broader Context

The transaction reflects PIF’s broader strategy to position Saudi Arabia as a hub for the international gaming and sports industries. If completed, EA will remain headquartered in Redwood City, California, with Andrew Wilson continuing as CEO. The deal’s closure had been expected by June 2026, though the regulatory review process now extends into late July at the earliest.variety