UK watchdog flags competition concerns over Synopsys-Ansys deal

Investing.com -- Synopsys Inc (NASDAQ:SNPS ).'s proposed $35 billion acquisition of software developer Ansys (NASDAQ:ANSS ) Inc. has come under scrutiny by the UK's Competition and Markets Authority (CMA). The watchdog has raised questions about potential competition issues in the supply of semiconductor chip design and light simulation products in the UK.

The CMA issued a statement indicating that the deal could face a more thorough antitrust investigation if the two companies fail to submit suitable proposals addressing the identified competition concerns. This announcement was given on Friday.

Synopsys, however, is already taking measures to address the issues raised by the CMA, according to a company spokesperson. The company remains optimistic about the progress of the deal, with the spokesperson stating, "We continue to expect the transaction to close in the first half of 2025."

The acquisition, an all-American deal, is part of Synopsys' strategic plan to expand its software development capabilities. The deal's successful completion is contingent on meeting regulatory requirements, including addressing the concerns raised by the CMA.

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Source: Investing.com