Investors, including Saudi Arabia's Public Investment Fund (PIF), are set to receive European Union approval for a $55 billion acquisition of video game developer Electronic Arts under the bloc's rules, according to Reuters, citing people familiar with the matter.

A consortium comprising the Saudi fund, which is worth around $1 trillion, Jared Kushner's Affinity Partners, and private investment firm Silver Lake announced the deal in September. It is the largest debt-financed acquisition in history.

The deal is a major boost for the Public Investment Fund in its efforts to become a global hub for gaming and sports, betting on the enduring value of popular game franchises as the industry recovers from a prolonged downturn.

It also underscores Saudi Arabia's diversification of its economy away from oil toward infrastructure, tourism, sports, gaming and other sectors.

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The European Commission, which acts as the EU's competition enforcer, is expected to approve the deal after its preliminary review under the Foreign Subsidies Regulation (FSR) ends on July 30, according to Reuters sources.

Both the Commission and Electronic Arts declined to comment. The fund did not respond to requests for comment via email.

The Foreign Subsidies Regulation (FSR) aims to prevent unfair subsidies from outside the EU for companies seeking to acquire competitors in the 27-nation bloc.

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The deal is also expected to receive unconditional EU approval under merger rules when the preliminary review ends on July 22.

Two previous deals involving Middle Eastern companies — Abu Dhabi state oil company ADNOC's acquisition of German chemicals firm Covestro, and UAE telecoms group e&'s bid to buy parts of Czech telecoms company PPF — were only approved after lengthy investigations and corrective measures.

Public Investment Fund invests in the world's largest gaming companies

The Saudi national strategy for gaming and esports aims to contribute about 50 billion riyals to GDP by 2030, create 39,000 direct jobs, and make the kingdom home to more than 250 specialized gaming development companies.

The Public Investment Fund strengthened its presence in the sector through the Savvy Games Group, which acquired Scopely, developer of Monopoly Go, for $4.9 billion in 2023.

The fund also holds investments in a number of the world's largest gaming companies.