To add details and background

From Fu Yun Che

BRUSSELS, July 17 (Reuters) - A group of investors, including Saudi Arabia's Public Investment Fund, are on track to secure European Union approval for a $55 billion takeover of video game developer Electronic Arts under the bloc's rules, sources familiar with the matter said.

The deal, the largest debt-financed acquisition in history, was announced in September by Saudi Arabia’s $1 trillion sovereign wealth fund, Jared Kushner’s Affinity Partners, and private equity firm Silver Lake.

The deal represents a major step in the Public Investment Fund's efforts to transform into a global hub for games and sports, relying on the sustainable value of mega gaming chains at a time when the sector is recovering from a prolonged period of decline.

The deal also highlights the kingdom’s efforts to diversify its economy away from heavy reliance on oil and its growing interest in sectors such as infrastructure, tourism, sports and gaming, among others.

The sources said the European Commission, the bloc’s antitrust and competition protection regulator, will approve the deal after completing an initial review under the Foreign Subsidies Regulation on July 30.

The European Commission declined to comment. The Public Investment Fund and Electronic Arts have not yet responded to emailed requests for comment.

The Foreign Subsidies Regulation aims to prevent unfair support from outside the European Union for companies seeking to acquire competitors within the bloc.

The deal is also expected to receive unconditional approval from the European Union under merger rules after the initial review concludes on July 22.

Two previous deals involving Middle Eastern companies – Abu Dhabi National Oil Company (ADNOC) acquiring German chemicals firm Kovestro and the UAE's E&P Group's bid to acquire stakes in Czech telecommunications company BPF – were only approved after lengthy reviews and corrective actions.