📰 Synopsys' $35 Billion Ansys Acquisition Set for EU Approval
The deal, the largest tech merger since Broadcom-VMware, comes with concessions to address antitrust concerns.
Synopsys' SNPS 0.00%↑ $35 billion acquisition of Ansys is on track to receive conditional approval from European Union antitrust regulators, according to sources familiar with the matter. The deal, which would be the largest technology merger since Broadcom’s acquisition of VMware for $69 billion last year, marks a significant milestone for the semiconductor and software industries.
The European Commission, which is responsible for enforcing EU competition laws, is expected to finalize its preliminary review of the merger by January 10. To secure approval, Synopsys has offered to divest certain assets, including its Optical Solutions Group and the Ansys PowerArtist tool. These concessions aim to address concerns that the merger could stifle competition and harm innovation within the market for chip design software.
The acquisition would combine Synopsys' chip design tools with Ansys' engineering simulation software, which is widely used across industries ranging from aerospace to automotive, and even consumer goods. Ansys' tools are known for their role in optimizing product designs, including for companies such as Boeing and even tennis racket manufacturers like those for Novak Djokovic.
Regulators in the UK have also expressed concerns about the merger’s potential impact on competition, and Synopsys is expected to propose similar asset sales to the UK’s Competition and Markets Authority (CMA) to allay these worries.
This deal comes at a pivotal time as Teresa Ribera, the EU's new antitrust chief, takes over from Margrethe Vestager. Ribera’s approach to Big Tech mergers is being closely watched, as she steps into the role at a time when the EU continues to scrutinize high-profile acquisitions in the tech sector.
Synopsys and Ansys both declined to comment on the specifics of the ongoing review process. However, Synopsys reiterated its previous statement made to the UK CMA, where it committed to addressing competition concerns through asset sales.
The merger is expected to reshape the landscape of the tech sector, with regulators balancing the growing influence of major tech companies against the need to maintain competitive markets.
Source: Reuters, SiliconAngle
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