Synopsys’ $35 Billion Ansys Deal Faces UK Regulator Scrutiny, Reports Reuters

The UK’s competition watchdog announced on Monday that it is assessing whether the $35 billion acquisition of Ansys by chip design software firm Synopsys could impact competition in Britain.

The Competition and Markets Authority (CMA) has not yet initiated a formal investigation into this transaction.

In January, Synopsys unveiled its plans to acquire Ansys, a company whose software is utilized in the development of a variety of products, including airplanes and tennis rackets used by prominent athletes like Novak Djokovic.

This acquisition is significant as Synopsys specializes in tools for chip design, which aligns with Ansys’s software that evaluates electronic systems incorporating these chips. However, analysts have voiced concerns regarding potential regulatory hurdles given the already consolidated nature of the business software industry.

In May, Synopsys, which partners with major chip manufacturers such as Taiwan Semiconductor Manufacturing Co and Intel, disclosed that Chinese regulators had requested assistance in reviewing the deal.

Moving forward, based on feedback gathered during its information-gathering process, the CMA will decide whether to refer the deal for a phase 1 investigation or clear it of any competitive concerns.