The proposed $35 billion merger between Synopsys Inc. (NASDAQ:SNPS) and Ansys Inc. (NASDAQ:ANSS) is reportedly facing a delay due to the Chinese antitrust regulator.
What Happened: The State Administration for Market Regulation (SAMR) in China has put a hold on the approval of the merger between Synopsys, a chip design tool manufacturer, and Ansys, an engineering software developer, reported the Financial Times. This delay is attributed to the recent imposition of chip export controls by the Trump administration, which has further strained trade relations between the U.S. and China.
The deal, previously approved by regulators in the U.S. and Europe, was in the final phase of review by China’s SAMR and was anticipated to close by the end of June.
However, a source told the publication that SAMR's approval timeline was recently extended beyond the initial 180-day schedule because of the deal's complexity, rather than any direct connection to the ongoing trade war. The deal includes a “drop dead clause” on January 15, 2026, as per the company filings.
Why It Matters: The delay in the Synopsys-Ansys merger approval is a direct result of the escalating trade tensions between the US and China. This development comes in the wake of the US imposing new export restrictions on China, including semiconductor design software, chemicals, and other critical materials.
China, in turn, has threatened legal action against any individual or organization assisting with or implementing these US measures, further escalating the tech rivalry between the two countries.
The delay in the Synopsys-Ansys merger approval is indicative of the broader impact of the US-China trade tensions on the global tech industry.
Over the past year, Synopsys stock declined 15.6%, while Ansys climbed 5.69%, as per data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.