UK Competition Watchdog Considers Remedies for $35 Billion Synopsys-Ansys Deal

The United Kingdom’s Competition and Markets Authority (CMA) is weighing potential remedies proposed by Synopsys and Ansys to alleviate concerns over their planned $35 billion merger, according to Reuters. The regulatory review focuses on mitigating any anti-competitive impacts the merger could have on the chip design software market.

Synopsys, a major player in chip design software, announced its intention to acquire Ansys in a cash-and-stock deal back in January 2024. Ansys provides engineering simulation tools that have applications across various industries, from aerospace to consumer products. However, the proposed merger has drawn scrutiny from the CMA over potential market dominance issues.

Read more: Synopsys Proposes Divestitures to Secure EU Approval for $35 Billion Ansys Deal

According to Reuters, the CMA disclosed that the companies submitted their proposed undertakings on December 31. These include the divestiture of Ansys’ power consumption analysis tool for digital chips, along with Synopsys’ global optics and photonics software business. The aim of these divestments is to address competition concerns and maintain a fair playing field in the software market.

The CMA has set a deadline of March 5 to decide whether to accept the proposed remedies. However, there is an option to extend the review period to May 6 if further assessment is required, per Reuters. The regulatory body will evaluate whether these divestments sufficiently address concerns about reduced competition in the sector.

In response to the CMA’s announcement, a spokesperson for Synopsys expressed optimism about the progress of the regulatory process. The companies remain committed to maintaining a constructive dialogue with the CMA to ensure a positive outcome.

Source: Reuters