The Commission has found that the merger can proceed if proposed requirements are met.

The European Commission has stated that US chip design company Synopsys can move ahead with its acquisition of US simulation software provider Ansys, provided the organisation complies with a number of conditions. 

In January of last year, it was first announced that Synopsys had agreed to buy Ansys for a projected $35bn, in an effort to combine expertise and increase the combined company’s addressable market by 50pc. However, concerns arose that the amalgamation of the companies would damage market competitiveness. 

In December of 2024, following the results of a phase 1 investigation, the UK’s competition watchdog found that the acquisition had the potential to reduce competition in the supply of certain semiconductor chip design and light simulation products in the region. However, the watchdog said that it could approve the deal if its concerns are adequately addressed.

Now, the European Commission has given the go ahead for the acquisition on the proviso that Synopsys and Ansys meet their criteria for market competitiveness. Primarily, the parties have offered to divest activities that were identified by the Commission as raising significant competition concerns. These activities are Synopsys’ optics and photonics software, including Code V, LightTools, LucidShape, RSoft and ImSym, and Ansys’ register-transfer-level power consumption analysis software PowerArtist.

According to the Commission, these commitments address the competition concerns by ensuring that there will be sufficient competition and choice in the global markets for the supply of optics, photonics and register-transfer-level power consumption analysis software.  

The Commission will approve a suitable purchaser of the divested businesses in a separate procedure. Synopsys can only implement the acquisition of Ansys following that approval.

The decision is conditional upon full compliance with the criteria and the EU Commision will select an independent trustee to monitor implementation. 

Teresa Ribera, EU commissioner for competitiveness, welcomed the news. “In a world where complex chips need increasing amounts of power, innovative software tools, like those offered by both Synopsys and Ansys, help chip designers build chips that consume less power to the benefit of customers and the environment. 

“We were concerned that this acquisition may have significantly harmed competition in certain global markets for design software for chips or other products. However, thanks to the clear structural remedies offered by the parties, competition in these markets will be preserved and customers will continue to have access to innovative tools at competitive prices.”

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