Synopsys' $35 bln Ansys deal under UK regulator scrutiny
Aug 12 (Reuters) -UK's competition watchdog said on Monday it was looking into whether chip design software maker Synopsys' SNPS.O $35 billion acquisition of Ansys ANSS.O would affect competition in Britain.
The Competition and Markets Authority (CMA) is yet tolaunch a formal investigation into the deal.
CONTEXT
In January, chip design software maker Synopsys revealed its plan to acquire Ansys, whose software is used in creating a wide range of products, from aeroplanes to tennis rackets used by players like Novak Djokovic, in a $35 billion cash-and-stock deal .
WHY IT'S IMPORTANT
Synopsys specializes in creating tools for chip design, which complements Ansys's software for evaluating broader electronic systems that incorporate these chips.
However, the proposed merger has raised concerns among analysts about potential regulatory challenges in the already consolidated business software sector.
In May, Synopsis , which collaborates with major chipmakers like including Taiwan Semiconductor Manufacturing Co 2330.TW and Intel INTC.O said that Chinese regulators had requested their cooperation in scrutinizing the deal.
WHAT'S NEXT
Based on comments received during its information-gathering process, the watchdog will either refer the deal to a phase 1 probe or clear it of all competition concerns.
Reporting by Prerna Bedi in Bengaluru; Editing by Tasim Zahid
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
