Saudi Arabia’s PIF acquires 5% stake in Nintendo

Saudi Arabia’s PIF acquires 5% stake in Nintendo

Saudi Arabia’s sovereign wealth fund has acquired a 5 per cent stake worth $2.98bn in games maker Nintendo, its latest investment in a Japanese gaming company as the sector rapidly consolidates.

According to a filing with Japan’s Ministry of Finance on Wednesday, the Public Investment Fund has bought 6.5mn shares in the Kyoto-based creator of Mario and Donkey Kong.

The acquisition marked the latest purchase by the $500bn fund in the video games and e-sports sectors, where the Saudis have been expanding in the past two years.

The move comes amid speculation about further consolidation in the gaming industry and the role Japanese companies could play in it after Microsoft’s blockbuster $69bn purchase of Activision Blizzard in January. In February, Sony said it would buy game developer Bungie for $3.6bn.

In February, the PIF disclosed stakes of more than 5 per cent in two other Japanese gaming companies, online games provider Nexon and Capcom — the maker of the Street Fighter franchise.

Japanese equities have become cheaper in dollar terms because the Bank of Japan’s ultra-easy monetary policy, which stands in sharp contrast to the US Federal Reserve’s interest rate rises to tackle inflation, has pushed the yen to multiyear lows.

Last week Nintendo projected a