The UK competition watchdog has expressed concern over the proposed merger of Synopsys and Ansys, claiming the deal could reduce competition.
The US$35 billion acquisition may affect the market for certain semiconductor chip designs and light simulation products in the UK. Competition and Markets Authority (CMA) said.
The deal, initially announced in January 2024, was intended to bring SynopsysElectronic design automation solution with Ansys simulation and analysis capabilities. The two companies have been working together since 2017.
However, while in most cases the products offered by the two companies are complementary, the CMA notes that there are certain product areas where Synopsys and Ansys have strong market positions and compete closely with each other, meaning a merger is likely to be less Options available to customers.
Regulators are particularly concerned about global register transfer-level power analysis software, which is used to examine how much power a chip consumes and how much power it requires to operate. The merger may reduce options for users who rely on these tools Optimize chip design”, the CMA said.
There are also concerns about global optics softwareused in the design and simulation of products such as camera lenses, television monitors, and other optical systems.
“Synopsys and Ansys are important suppliers semiconductor Naomi Burgoyne, senior director of mergers at the CMA, said: “We are concerned that this deal could reduce innovation and lead to higher prices for these products in the UK.”
“Millions of businesses and consumers in the UK use products that rely on these companies’ software every day, whether it’s consumer electronics, medical equipment, modern vehicles or even cars. AI”.
The two companies will now have the opportunity to submit proposals to address the CMA’s concerns. If these are found to be inappropriate, the CMA will commence an in-depth Phase 2 investigation.
Synopsys said it had taken action to address many of the CMA’s concerns. For example, the company announced plans to sell its Optical solutions Leave the business to Keysight.
“Customers continue to express overwhelming support for this transaction. Together, Synopsys and Ansys can help drive cross-industry innovation and meet the rapidly growing customer demand for system design solutions that provide improved EDA and simulation and analysis (S&A) software.” Deeply integrated,” it said in a statement.
“We remain confident that the ongoing regulatory review process will be positively resolved and we continue to expect the transaction to close in the first half of 2025.”