Saudi Arabia’s Public Investment Fund-led acquisition of Electronic Arts was reportedly expected to receive EU approval under foreign-subsidy rules, removing a significant regulatory obstacle to the deal. The decision mattered because it would bring the proposed $55 billion takeover closer to completion and deepen Saudi Arabia’s investment in the global games industry.

The investor group includes the PIF, private-equity firm Silver Lake and Affinity Partners, and the European Commission was due to finish its preliminary review by 30 July. The review examined whether foreign state subsidies could unfairly distort competition in the EU; sources said the Commission was likely to clear the transaction without requiring concessions. Separate EU merger-control approval was also required.