UK watchdog says 35 bln-dollar Synopsys-Ansys deal raises competition concerns
Technology
UK watchdog says 35 bln-dollar Synopsys-Ansys deal raises competition concerns
(Reuters) - The UK's competition watchdog said on Friday that chip design software maker Synopsys' $35 billion acquisition of Ansys could reduce innovation and lead to higher prices but it could approve the deal if those concerns are resolved.
The Competition and Markets Authority (CMA) said the deal raises competition worries in the supply of semiconductor chip design and light-simulation products in the UK.
The watchdog said the merger could reduce choice for customers and lead to a loss of innovation, lower quality software, and higher prices which might be passed onto UK businesses and consumers.
"Semiconductor chips are crucial components in technologies used every day by UK consumers and also in key sectors including artificial intelligence and cloud computing," the CMA said.
It added that if the companies did not submit suitable proposals to address the concerns, it would progress to an in-depth probe of the merger.
A Synopsys spokesperson said the company had already taken steps to address all the concerns raised by the CMA, and its plans included the sale of its optical solutions business to Keysight subject to the completion of the Ansys acquisition.
"We remain confident in a positive resolution of the ongoing regulatory review process, and we continue to expect the transaction to close in the first half of 2025," the spokesperson added.
Synopsys, which makes tools for chip design, announced its cash-and-stock deal for Ansys in January. The target company's software is used to make a wide range of products, from airplanes to tennis rackets.
