McGuireWoods London partner Matthew Hall shared insights in a Nov. 8, 2024, Equity Report article regarding the ongoing merger control review of Synopsys’ proposed $35 billion acquisition of engineering simulation software provider Ansys.
The China State Administration for Market Regulation is expected to require behavioral remedies tailored to the Chinese market as a condition for approving the deal. The transaction is under scrutiny from competition authorities in other jurisdictions as well.
Hall highlighted the extensive pre-notification period and the volume of third-party information requests by the UK Competition and Markets Authority as indicative of concerns raised by stakeholders. He also commented on Synopsys’ proactive approach to addressing potential issues, noting the sale of its subsidiary Optical Solutions Group (OSG) to Keysight Technologies.
Hall expressed optimism about the deal’s chances of receiving UK clearance following a Phase 1 review with remedies, in light of Synopsys’ approach. A remedy package “would likely enshrine the sale of OSG as a remedy and also perhaps include additional licensing or access arrangements to deal with vertical and/or conglomerate concerns,” he said.
Given the global scope of Synopsys and Ansys’ operations, Hall emphasized the need for coordinated remedies across jurisdictions.
The Synopsys-Ansys merger continues to progress through merger control reviews worldwide, with the companies targeting closure by the first half of 2025.