UK Launches Antitrust Review Of Synopsys' $34 Billion Ansys Deal Over Growing Concerns

The UK's antitrust watchdog has launched an investigation into Synopsys Inc's SNPS $34 billion acquisition of software developer Ansys Inc ANSS.

On Friday, the Competition and Markets Authority (CMA) announced it had opened an initial phase one merger review due to potential competition concerns.

The CMA has recently intensified scrutiny in the tech sector, focusing on mergers involving AI, cloud services, and chip design, Bloomberg reports.

Also Read: ANSYS, Taiwan Semiconductor, Microsoft Team Up To Supercharge Next-Gen Chip Simulations

Synopsys acquired Ansys to broaden its customer base and product offerings.

Under the deal, Ansys shareholders will receive $197 in cash and 0.345 shares of Synopsys stock for each Ansys share they own.

The CMA will determine by Dec. 20 whether the investigation will proceed to an in-depth review.

The CMA has opened an investigation into Google's $2 billion investment in AI startup Anthropic, assessing its potential impact on competition. This regulatory step follows CMA's recent approval of a similar Amazon-Anthropic partnership.

Microsoft, which invested $10 billion in OpenAI, recently gave up its observer seat on OpenAI's board amid rising global regulatory pressure on Big Tech's AI investments.

Price Actions: ANSS stock was up 1.38% at $325.80, while shares of SNPS were up 1.5% at $502.48 at the time of publication Friday.

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