By Foo Yun Chee
BRUSSELS, July 17 (Reuters) - A group of investors including Saudi Arabia's Public Investment Fund is set to secure European Union approval for its $55 billion acquisition of video game developer Electronic Arts under EU subsidy rules, people familiar with the matter said.
Saudi Arabia's $1 trillion wealth fund, Jared Kushner's Affinity Partners and private equity firm Silver Lake announced the deal, the largest leveraged buyout in history, in September last year.
The deal represents
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 the kingdom's diversification from oil into infrastructure, tourism, sports and gaming and other sectors.
The European Commission, which acts as the EU competition enforcer, is set to clear the deal after the end of its preliminary review under its Foreign Subsidies Regulation (FSR) on July 30, the people said.
The Commission declined to comment. PIF and Electronic Arts did not immediately respond to emailed requests for comment.
The FSR is aimed at preventing unfair non-EU subsidies to companies looking to acquire rivals in the 27-country bloc.
The deal is also expected to win unconditional EU clearance under merger rules when a preliminary review ends on July 22.
Two previous deals involving Middle East companies, Abu Dhabi state oil firm ADNOC's acquisition of German chemicals company Covestro and UAE telecoms group e&'s bid for parts of Czech telecoms company PPF, were only cleared after lengthy investigations and remedies.
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)
