The European Commission is moving to greenlight an acquisition deal led by a group of investors, including the Saudi Public Investment Fund (PIF), for the American video game developer Electronic Arts, in a deal worth $55 billion.

According to Reuters citing informed sources, the European Commission is expected to approve the deal under foreign subsidy rules, after the preliminary review scheduled for July 30 expires, without imposing conditions or corrective measures.

Deal Details and Parties

The sources also indicated that the deal is also likely to receive unconditional approval from the European Union under merger rules, with the preliminary review ending on July 22.

The Saudi Public Investment Fund, along with Jared Kushner's Affinity Partners and private equity firm Silver Lake, announced the deal last September, which was described as the largest leveraged buyout in history.

Goals and Background of the Deal

The deal is part of the Public Investment Fund's strategy to strengthen its presence in the e-sports and sports sectors, as part of the kingdom's efforts to build a global hub for the gaming industry and invest in major entertainment franchises as the sector recovers from a downturn in recent years.

In the same context, the deal reflects the kingdom's move to diversify its economy away from oil, by expanding its investments in infrastructure, tourism, sports, e-sports, and other promising sectors.

Reactions and Foreign Subsidy System

Neither the European Commission nor Electronic Arts commented on the report, while the Public Investment Fund did not respond to Reuters' emailed requests for comment.

The European Union's foreign subsidy system aims to prevent companies subsidized by governments outside the bloc from benefiting from advantages that could affect competition when acquiring companies within EU member states, while previous deals by Middle Eastern companies have undergone lengthy investigations before approval.

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