The $35 billion merger between Ansys and Synopsys is facing delays in China due to the hold placed on its approval by the antitrust regulator, coinciding with tighter US export rules.
Delay in Deal Approval
China's State Administration for Market Regulation (SAMR) has paused its approval of the merger between Ansys, a developer of engineering simulation tools, and Synopsys, despite the deal already having been cleared in the US and Europe. The review was expected to conclude by the end of June but has now experienced a delay.
Complexities of the Deal and Regulation
Sources from the Financial Times indicate that the delay may be attributed not only to the broader US-China trade tensions but also to the complex nature of the deal itself. Originally, SAMR's timeline allowed for 180 days for review, but the process has now extended beyond that. Synopsys CEO Sassine Ghazi mentioned during an earnings call that the company is working cooperatively with SAMR to secure regulatory clearance and hopes to close the deal in the first half of the year.
Context of US-China Trade Relations
The announcement of the delay coincides with attempts by US and Chinese officials to ease their trade standoff. President Donald Trump recently stated that both sides agreed to revive a tariff truce. Despite ongoing restrictions on certain technologies, there are indications that the US may ease some restrictions as Synopsys has resumed shipments of certain products to China.
The delay in the Ansys and Synopsys merger highlights the complexities of US-China corporate interactions amidst evolving trade policies and antitrust regulations.
