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Saudi PIF’s $55 billion EA deal gets EU approval under subsidy rules

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BRUSSELS, July 31 : Saudi Arabia’s Public Investment Fund and a group of investors have gained EU approval for their $55 billion acquisition of video game developer Electronic Arts under the bloc’s subsidy rules, a European Commission filing showed on Friday.

In a regulatory filing on Thursday, Electronic Arts said it had received all regulatory approvals as of July 30 and that it expects to close the deal on August 4.

The deal secured a green light under EU merger rules last week, but the review under the Foreign Subsidies Regulation (FSR) was seen as the bigger hurdle.

The FSR aims to prevent unfair non-EU subsidies granted to companies looking to acquire rivals in the 27-country bloc.

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Reuters reported exclusively earlier this month that the deal would secure EU approval under the FSR.

The deal is a major push by PIF in its efforts to become a global hub for games and sports, betting on the enduring value of blockbuster game franchises as the industry recovers from a prolonged downturn.

It also underscores Saudi Arabia’s diversification from oil into infrastructure, tourism, sports and gaming and other sectors.

Source: Reuters

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