Synopsys, a leading U.S. chip design software company, is on track to receive conditional approval from the European Union (EU) for its $35 billion acquisition of Ansys, according to sources familiar with the matter. This acquisition, one of the largest technology deals in recent years, follows Broadcom’s $69 billion purchase of VMware and marks a significant move in the high-tech sector.
The deal, which would be the first major Big Tech merger under the leadership of new EU antitrust chief Teresa Ribera, has raised concerns in the EU about its potential impact on competition, particularly in the areas of innovation and pricing. To address these concerns, Synopsys has offered to divest key assets, including its Optical Solutions Group and Ansys PowerArtist software. These measures are aimed at preserving competition within the market and satisfying the EU’s regulatory requirements.
In addition to seeking approval from the EU, Synopsys is also expected to present similar remedies to the UK competition watchdog, which expressed concerns about the potential effects of the merger on market dynamics last week.
The European Commission, responsible for enforcing antitrust laws in the EU’s 27 member states, is slated to complete its preliminary review of the deal by January 10. The Commission declined to comment on the ongoing review. Synopsys, for its part, has refrained from making additional comments but has reiterated its commitment to selling its Optical Solutions business in response to regulatory feedback.
This acquisition, which brings together Synopsys’ cutting-edge chip design tools with Ansys’ advanced simulation software, has the potential to reshape the landscape of product design, from aerospace engineering to consumer electronics. Ansys’ software is already used in creating everything from aircraft to sports equipment, such as tennis rackets used by global stars like Novak Djokovic.
Industry observers are watching closely to see how Ribera, who took office earlier this month, handles this high-profile merger, particularly with regard to the EU’s approach to regulating Big Tech transactions. The outcome of this deal could set the tone for future antitrust actions involving major technology companies.
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