China's State Administration for Market Regulation (SAMR) has postponed its approval of a proposed $35 billion merger between two software companies, Synopsys and Ansys, according to a report by the Financial Times on Friday. This development introduces a significant regulatory hurdle for the acquisition, which was initially announced in January of the previous year.
The postponement from China's antitrust regulator means that the merger cannot proceed as planned until this final key approval is secured. Regulatory clearances from all relevant jurisdictions are a critical condition for the completion of the cash-and-stock transaction. The delay creates uncertainty regarding the timeline for the deal's closing.
The $35 billion acquisition aims to combine Synopsys' electronic design automation with Ansys' broad simulation and analysis portfolio to create a leader in silicon to systems design solutions. However, the delay from China's SAMR indicates that the companies will need to continue working with the regulator to address any outstanding concerns before the merger can be finalized.
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