China delays approval of $35 billion merger between Synopsys and Ansys: Report

Time of India

19 hours ago

China's market regulator has postponed its approval of a proposed $35 billion merger between software companies
Synopsys
and
Ansys
after Donald Trump tightened
chip export controls
against China, the Financial Times reported on Friday.
The U.S. and China reached a tentative trade truce at talks in London this week after a previous agreement faltered over China's curbs on mineral exports.
That prompted the
Trump administration
to apply additional export controls on shipments of
semiconductor design software
, jet engines for Chinese-made planes and other goods.
The transaction between the U.S. groups had already entered the last stage of the Chinese State Administration for Market Regulation's approval process and was expected to be completed by the end of this month, the FT report said, citing people familiar with the matter.
Washington's move to ban chip design software sales by U.S. companies, including Synopsys, to China in late May contributed to the delay, the newspaper said.
Reuters couldn't immediately verify the report. Synopsys declined to comment on the report. Ansys and the Chinese regulator didn't immediately respond to Reuters' requests for comment.
The United States has ordered a broad swathe of companies to stop shipping goods to China without a license and revoked licenses already granted to certain suppliers, Reuters reported last month.
Last month, the U.S. Federal Trade Commission said it would require Synopsys and Ansys to divest certain assets to resolve antitrust concerns surrounding their merger.
Synopsys CEO has said the company has regulatory clearances for the merger in all jurisdictions excluding China.