The Middle Eastern money in the mega-merger between Paramount and Warner Bros. Discovery (WBD) is to be the subject of scrutiny in the European Union.
In a filing this week, the European Commission said that Paramount’s takeover of WBD would be examined under Foreign Subsidies Regulations.
The European Commission must decide by July 14 whether to clear the agreement — which is funded to the tune of $24 billion by Middle Eastern entities — or open a full investigation.
Saudi Arabia’s Public Investment Fund, Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. joined U.S.-based RedBird and LionTree as investors in the merger, Paramount said in an SEC filing in April.
The Foreign Subsidies Regulation work is distinct from the merger investigation also being undertaken by the European Commission.
A Phase 1 investigation is underway with a deadline of July 7. Competition scholars have predicted that a Phase 2 investigation is likely.
Separately this week, the Competition and Markets Authority, the UK’s antitrust authority, also launched a formal investigation into the $110 billion merger between Paramount and WBD.
